Finding 626362 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-09

AI Summary

  • Core Issue: The District failed to ensure that contractors paid laborers the required prevailing wage rates for federally funded construction projects.
  • Impacted Requirements: Noncompliance with federal wage laws under the Davis-Bacon Act, specifically regarding wages for projects over $2,000.
  • Recommended Follow-Up: The District should review federal Davis-Bacon requirements, create clear policies, and implement procedures to ensure compliance moving forward.

Finding Text

FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS Finding Number: 2022-002 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Fund Assistance Listing Numbers: 84.425D, 84.425U Federal Agency: U.S. Department of Education Federal Award Numbers: S425D210038, S425U210038 Pass-Through Agency: Arizona Department of Education Questioned Costs: Unknown Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions CRITERIA 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) by the Department of Labor (DOL) (40 USC 3141-3144, 3146, and 3147). CONDITION It could not be determined whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. CAUSE The District completed the ADE certifications indicating they would comply with Davis Bacon, however, did not follow through. EFFECT The District did not comply with the special tests and provisions requirements of the grant. CONTEXT The District did not notify contractors and subcontractors of the requirements to comply with the wage rate requirements and did not obtain copies of certified payrolls for construction projects funded with grant monies. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should review Federal requirements over Davis Bacon, develop policies and procedures, and ensure those developed policies and procedures are implemented. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Categories

Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

  • 49919 2022-001
    Material Weakness
  • 49920 2022-002
    Significant Deficiency
  • 49921 2022-001
    Material Weakness
  • 49922 2022-002
    Significant Deficiency
  • 49923 2022-002
    Significant Deficiency
  • 49924 2022-001
    Material Weakness
  • 49925 2022-002
    Significant Deficiency
  • 626361 2022-001
    Material Weakness
  • 626363 2022-001
    Material Weakness
  • 626364 2022-002
    Significant Deficiency
  • 626365 2022-002
    Significant Deficiency
  • 626366 2022-001
    Material Weakness
  • 626367 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $1.68M
10.559 Summer Food Service Program for Children $1.64M
84.027 Special Education_grants to States $248,839
84.365 English Language Acquisition State Grants $129,557
84.367 Supporting Effective Instruction State Grants $120,387
10.558 Child and Adult Care Food Program $62,411
84.425 Covid-19 Education Stabilization Fund $55,870
10.555 National School Lunch Program $32,032
84.173 Special Education_preschool Grants $23,001
10.553 School Breakfast Program $3,665