Finding Text
Finding Number: 2023-001
Federal Program: COVID-19 ARP – Education Stabilization Fund
Federal Award Identification Number and Year: N/A
Assistance Listing Number (ALN): 84.425U
Federal Awarding Agency: U.S. Department of Education
Compliance Requirement: Special Tests and Provisions – Wage Rate Requirements
Pass-through Entity: Ohio Department of Education
Repeat Finding: No
Significant Deficiency and Material Noncompliance – Wage Rate Requirements
Criteria: All prime construction contracts in excess of $2,000 awarded by non-Federal entities must include a
provision for compliance with the Davis-Bacon Act (40 U.S.C. 3141-3144, and 3146-3148) as supplemented by
Department of Labor regulations (29 CFR Part 5, “Labor Standards Provisions Applicable to Contracts
Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be
required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage
determination made by the Secretary of Labor.
In addition, contractors must be required to pay wages not less than once a week. The non-Federal entity must
place a copy of the current prevailing wage determination issued by the Department of Labor in each
solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the
wage determination. (2 CFR 200 Appendix II (d)).
Condition: There was no documentation to support compliance with wage rate requirements or documentation
showing that the Academy required contractors to comply with prevailing wage requirements for any of the
construction work. Total costs for various building improvements, renovations & repairs were $138,382 during
fiscal year 2023.
Questioned Costs: None.
Identification of How Questioned Costs Were Computed: N/A
Context: The Academy provided assurances to the Ohio Department of Education's Comprehensive
Continuous Improvement Plan (CCIP) that it would comply with wage rate requirements when it communicated
its plan to use federal ESSER funds for improvements to its building.
Cause and Effect: The Academy did not comply with the special test of wage rate requirements on the various
renovation, repair and improvement projects to its building that were funded with federal grants.Recommendation: The Academy should implement processes to review federal grant compliance requirements
and implement procedures to help ensure the Academy complies with applicable requirements.
Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan