Finding Text
Condition: Construction projects did not obtain certified payrolls documenting compliance with wage rate requirements.
Criteria: 29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted construction requires that nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (Which still may be referenced as Davis-Bacon Act). Which includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each which in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls).
Cause: Failure to understand requirements for federally funded construction projects.
Context: Construction contracts to be paid with federal funds did not include wage rate requirements. In addition, required certified payrolls were not obtained.
Effect: Noncompliance with Uniform Guidance
Repeat Finding from Prior Year: No
Recommendation: We recommend that the District obtain certified payrolls for all federally funded construction projects. We also recommend that federal funded contracts include required provisions. We also recommend that the District review all requirements for federal funds received to ensure compliance.
Views of Responsible Officials
and Planned Corrective
Action: Typically District does not use federal funds for construction. These were renovations in response to COVID-19 and allowed expenditure of the program. The District will make sure when construction contracts are bid they let contractors know federal funds will be used and make sure the Contractor is able to comply with the requirement of certified payrolls to be submitted with all invoices submitted to District if federal funds are going to be used.