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.