Finding Text
Condition: There were Education Stabilization Fund construction projects performed by contractors. Grant expenditures for the projects totaled $770,436. (ESSER II - $401,545 and ESSER III $368,891). There was not a prevailing wage clause in the contracts and certified payrolls were not received. Questioned Costs: $770,436 Criteria: Wage rate requirements apply to the Education Stabilization Fund when laborers and mechanics employed by contractors or subcontractors work on construction contracts more than $2,000. Laborers must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Nonfederal entities shall include in their contracts subject to wage rate requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement of the contractor or subcontractor to submit to the District weekly payrolls and a statement of compliance (certified payrolls). Cause: The District was not aware that the wage requirement applied to these construction projects. Effect: Potential reimbursement for costs that did not follow the wage rate requirements. Context: The Public address system, HVAC, and water heater construction projects began in May, June, and September 2021, respectively, before the District was aware of wage rate requirements. After becoming aware of the requirement, there were no further construction projects. Recommendation: Establish controls to comply with wage rate requirements related to the Education Stabilization Fund. Response: The District became aware of wage rate requirements after finishing the project. Before bidding any future construction projects more than $2,000, the request for bid and contract will include a prevailing wage rate clause. Certified payrolls will be received for any such contracts.