Finding Text
Finding The Uniform Guidance, 2 CFR 200.303, requires non-federal entities receiving federal awards to establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Title 2 U.S. Code of Federal Regulations, Part 200, Appendix XI Compliance Supplement (Uniform Guidance ), Part 4 Agency Program Requirements, 20.001 ? Wage Rate Requirements Cross-Cutting Section, Section III Compliance Requirements for Special Test and Provisions requires all laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for locality of project (prevailing wage rates) by the Department of Labor (DOL) and for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). In testing the Education Stabilization Fund, one of the two construction project contracts tested did not include the prevailing wage rate clause nor were there weekly submissions of the required certified payroll. The Board did not have procedures in place to ensure contractors were notified of the requirements to comply with the Davis-Bacon Act as supplemented by Department of Labor regulations and the prevailing wage rate requirements were not included in one of the construction contracts tested. As a result, the Board is not in compliance with the Uniform Guidance as it pertains to wage rate requirements. Recommendation The Board should ensure the wage rate requirements of the Uniform Guidance are followed for all construction projects contracts in excess of $2,000 financed by federal assistance funds.