Finding 6784 (2023-001)

FEDERAL AWARD PROGRAM – 84.425 Elementary and Secondary School Emergency Relief Fund SPECIFIC REQUIREMENT - Recipients and subrecipients that use ESF funds for minor remodeling, renovation or construction contracts that are over $2,000 and use laborers and mechanics must meet Davis-Bacon prevailing wage requirements. CONDITION: We noted that certified payroll reports from the contractor were not obtained for the year under audit. QUESTIONED COSTS: NONE CONTEXT: The finding is limited to this major program and the context noted in the condition. EFFECT: Without certified payroll reports being performed the possibility exists that prevailing wages were not met. CAUSE: Certified payroll reports from the contractor were not obtained during the fiscal year. RECOMMENDATION: We recommend the District collect and review certified payroll reports from contractors for construction projects with labor funded through federal funds. VIEWS OF RESPONSIBLE OFFICIALS: Prior to closing audit work, certified payroll reports had been completed and provided to the Auditor. The Business Manager has implemented a task to ensure certified payroll reports are completed and obtained in a timely manner before expenses are paid to contractors. The vendor is a known vendor that we know pays prevailing wages.