Finding 627748 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-27

AI Summary

  • Core Issue: The School failed to ensure that contractors paid laborers the required prevailing wage rates for federally funded construction projects over $2,000.
  • Impacted Requirements: Compliance with federal wage laws (40 USC ??3141-3144) was not met, as the School did not verify wage rates or include necessary clauses in contracts.
  • Recommended Follow-Up: The School should review all federally-funded projects to identify those needing prevailing wage compliance and obtain certified payrolls to confirm adherence.

Finding Text

Finding Number: 2022-002 Repeat Finding: No Program Name/Assistance Listing Title: COVID-19 Education Stabilization Fund Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Numbers: A19AV00937 Pass-Through Agency: Arizona Department of Education Questioned Costs: N/A 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 The School did not determine 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 School was unaware that a project completed during the year was subject to prevailing wage rate requirements. EFFECT The School could not demonstrate that prevailing wage rates were paid on all applicable projects during the year. CONTEXT For one project funded by the federal grant, the School did not include required prevailing wage rate clauses in the contract or subcontract and did not obtain copies of certified payroll for each week work was performed. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The School should review all federally-funded projects and determine which are subject to prevailing wage rate requirements. When applicable, the School should obtain certified payrolls from contractors and subcontractors to determine that prevailing wage rate requirements are met. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.

Categories

Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

  • 51303 2022-001
    Material Weakness Repeat
  • 51304 2022-003
    Significant Deficiency Repeat
  • 51305 2022-004
    Significant Deficiency Repeat
  • 51306 2022-002
    Significant Deficiency
  • 627745 2022-001
    Material Weakness Repeat
  • 627746 2022-003
    Significant Deficiency Repeat
  • 627747 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
15.042 Indian School Equalization $1.45M
84.425 Covid-19 Education Stabilization Fund $602,383
15.046 Administrative Cost Grants for Indian Schools $551,709
15.047 Indian Education Facilities, Operations, and Maintenance $410,310
84.365 English Language Acquisition State Grants $195,054
84.287 Twenty-First Century Community Learning Centers $168,565
84.027 Special Education_grants to States $161,438
15.044 Indian Schools_student Transportation $127,905
10.559 Summer Food Service Program for Children $78,289
84.010 Title I Grants to Local Educational Agencies $64,138
84.336 Teacher Quality Partnership Grants $51,839
84.196 Education for Homeless Children and Youth $29,992
10.555 Covid-19 National School Lunch Program $9,239
10.555 National School Lunch Program $8,756