Finding 995 (2022-003)

Criteria or Specific Requirement: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by Federal assistance must be paid not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). In addition, non-Federal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is perfonned, a copy of the payroll and a statement of compliance (certified payrolls). Condition: During our review of grant expenditures, one construction project over $2,000 was noted. Weekly certified payrolls were not submitted to the District. Cause: Administrative oversight. Effect: The District was not provided weekly certified payrolls from the contractor. Questioned Costs: $97,800 Repeat Finding: No Recommendation: We recommend that the District obtain the weekly certified payrolls from all contractors and subcontractors where construction contracts exceeding $2,000 are financed with Federal assistance. Views of Responsible Officials: Management's views and corrective action plan is included at the end of this report.