Finding 966136 (2023-003)

Condition The District did not retain documentation sufficient to determine that the Davis-Bacon compliance clause was included in advertised specifications. In addition, the District did not receive weekly certified payrolls from three contractors who were working on projects funded with Impact Aid construction awards. Criteria 40 USC 3142(a): "The advertised specifications for every contract in excess of $2,000, to which the Federal Government ... is a party, for construction ... of public buildings and public works of the Government .... that are located in a State ... which requires or involves the employment of mechanics or laborers shall contain a provision meeting stating the minimum wages to be paid various classes of laborers and mechanics. 40 USC 3145(a): " ... each contractor and subcontractor each week must furnish a statement on the wages paid each employee during the prior week." Cause The District did not have internal controls sufficient to ensure compliance. Effect The District is not in compliance with federal regulations. Recommendation We recommend that the District develop internal controls to ensure advertised solicitations contain the required clause. We further recommend that the District obtain certified payrolls for all construction projects funded with Federal Impact Aid awards.