Finding 979292 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-06-26

AI Summary

  • Core Issue: The Board failed to include prevailing wage rate clauses in a construction contract exceeding $2,000, violating the David-Bacon Act.
  • Impacted Requirements: Contractors did not submit weekly certified payrolls, leading to non-compliance with federal wage rate standards.
  • Recommended Follow-Up: Implement controls to ensure all future contracts comply with the David-Bacon Act and require certified payroll submissions from contractors.

Finding Text

Title 29, U.S. Code of Federal Regulations, Part 5, Sub-Part A Davis Bacon and Related Acts Procisions and Procedures (the "David-Bacon Act"), requires that any construction contract in excess of $2,000 that is funded wholly or in part by federal funds include prevailing wage rate clauses. The 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 locality of project (prevailing wage rates) by the Department of Labor (DOL) and the contractor or subcontractor must 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). During fiscal year 2023, the board entered into one construction project that did not include prevailing wage rate clauses. As of September 30, 2023, the Board expended $57,545.52 of COVID-19 Education Stabilization Funds on this project. The Board did not have controls in place to ensure the David-Bacon Act wage rate requirements were included in construciton contracts; therefore, construction project contracts were awarded during the fiscal year that did not include prevailing wage rate clauses nor did the contractors submit weekly certified payrolls to the Board. As a result, the Board is not in compliance with the David-Bacon Act as it pertains to wage rate requirements.

Categories

Questioned Costs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 402850 2023-002
    Significant Deficiency
  • 402851 2023-002
    Significant Deficiency
  • 402852 2023-002
    Significant Deficiency
  • 979293 2023-002
    Significant Deficiency
  • 979294 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.010 Title I Grants to Local Educational Agencies $1.36M
10.555 National School Lunch Program $1.24M
10.553 School Breakfast Program $398,277
84.367 Improving Teacher Quality State Grants $167,106
10.579 Child Nutrition Discretionary Grants Limited Availability $109,860
84.424 Student Support and Academic Enrichment Program $95,167
84.358 Rural Education $74,229
84.027 Special Education_grants to States $72,181
84.048 Career and Technical Education -- Basic Grants to States $68,520
10.582 Fresh Fruit and Vegetable Program $35,094
84.365 English Language Acquisition State Grants $26,004
10.649 Pandemic Ebt Administrative Costs $17,100
84.173 Special Education_preschool Grants $10,996
84.425 Education Stabilization Fund $5,333
96.001 Social Security_disability Insurance $700