Finding Text
2023-001 – U.S. Department of Education, for the Period July 1, 2022 through June 30, 2023,
Assistance Listing #84.425C, #84.425D and #84.425U Education Stabilization Fund
Statement of Condition: Documentation of wage rate requirements in construction contracts and
verification of certified weekly payrolls was not performed on certain contracts entered into during the
period July 1, 2021 through June 30, 2022 but not completed until the period July 1, 2022 through June
30, 2023, the current period under audit.
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.
Management needs to ensure that all contractors and subcontractors are submitting weekly certified
payrolls and verify that they are being paid at least the prevailing wage rates.
Effect: Contracted employees could potentially not be paid prevailing wage rates, which could jeopardize
grant funding.
Cause: For contracts entered into during the period July 1, 2021 through June 30, 2022 but not
completed until the period July 1, 2022 through June 30, 2023, the current period under audit, the
School Department did not include language in its construction contracts that included wage rate
requirements and did not obtain certified payroll information from contractors.
Recommendations: Management should carefully review all contracts related to grants to ensure they
include the required language. In addition, management should ensure that contractors submit the
required certified payrolls.
Questioned Costs: None