Finding 904 (2023-003)

Education Stabilization Fund AL 84.425 – Special Test– Wage Rate Requirements Criteria 29 CFR section 5.5 includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition The required certified payrolls were not submitted to the District on a weekly basis. Cause Oversight by District management. Effect The District was not in compliance with the Wage Rate Requirement. Questioned Costs None Context As part of the single audit, a sample of the certified payrolls for the District’s construction project was requested for testing. Management requested these certified payrolls from their contractor. Per discussion with Management, it was noted that the District was not receiving the certified payrolls weekly as required and only requested them for the single audit. We tested 4 certified payrolls which were properly certified. We also noted the Wage Rate Requirements were properly included in the construction contract. Repeat Finding No Recommendation The District should implement procedures to ensure the contractor submits to the District weekly, the certified payrolls for each week in which any contract work is performed. The certified payrolls should be reviewed by the District to ensure they are in compliance with the Wage Rate Requirements. Views of Responsible Officials and Planned Corrective Actions The District agrees with the recommendation and will implement it immediately.