Finding Text
Finding 2022-003 Program: Education Stabilization Fund Section 1 Federal Agency: United States Department of Education AL #: Cluster 84.425C, 84.425D, and 84.425R Federal Award Identification Number and Year: Various ? See SEFA Pass-through Entity: Missouri Department of Elementary and Secondary Education (DESE) Type of Compliance Finding: N ? Special Tests and Provisions Criteria Per the U.S. Department of Labor, federal rules and regulations 40 USC 3141-3144, 3146, and 3147; 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 the locality of the project (prevailing wage rates). Condition During discussion, observations, and our understanding of internal control, we observed the District followed the State of Missouri?s guidelines for construction projects, which states that public works projects valued at $75,000 and under are not subject to prevailing wage regardless of federal funding source. Two of the seven construction contracts paid with federal assistance funds that were below $75,000, but in excess of the applicable $2,000 federal threshold, did not have prevailing wage rate clauses. Cause The District did not follow federal rules and regulations regarding prevailing wage rate requirements for construction contracts in excess of $2,000 financed by federal assistance funds. Effect Laborers and mechanics employed by contractors or subcontractors for construction contracts in excess of $2,000 may not have been paid prevailing wage rates established for the locality of the project. Questioned costs $13,420 Is the finding a repeat finding No Recommendation We recommend the District establish a process to ensure that prevailing wage rate clauses are included in contracts that exceed the federal requirement for construction projects financed by federal assistance funds and documentation of certified payrolls on those contracts are obtained. Views of responsible officials/planned corrective actions Management agrees with the finding. See Corrective Action Plan on Organization?s letterhead.