Finding 960672 (2023-001)

Findings and Questioned Costs Related to Federal Awards Finding Number: 2023‐001 Repeat Finding: No Program Name/Assistance Listing Title: Education Stabilization Grant Assistance Listing Number: 84.425U Federal Agency: U.S. Department of Education Federal Award Number: S425U210038 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC §§3141‐3144, 3146, and 3147). Condition The District did not determine whether laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds were paid equal to or in excess of the prevailing wage rate for the locality. Cause The District was unaware prevailing wage rate requirements applied to its construction contract. Effect The District did not comply with the special tests and provisions requirements of the grant. Context The District did not establish a wage determination and did not perform any prevailing wage rate compliance monitoring procedures in connection with the construction of the Field of Dreams project. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should review Federal requirements over prevailing wage rates, develop policies and procedures, and ensure those developed policies and procedures are implemented. Views of Responsible Officials See Corrective Action Plan.