Unified School District Number 452

Finding 2023-001 SIGNIFICANT DEFICENCY AND MATERIAL NONCOMPLIANCE Special Tests Criteria: When contracting with a contractor for amounts greater than $2,000 the District is required to observe the Davis-Bacon prevailing wage requirements. The Davis-Bacon Act and Kansas State Department of Education (KSDE) requires the District to following a specific set of requirements. Per KSDE’s “Capital Improvement and Construction with Federal Funds” handout: • Contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. • Contractors must be required to pay wages not less than once a week. • District must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. • Contract must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. 3145), • District must report all suspected or reported violations to the Federal awarding agency. Condition: While performing the special tests, as required by May 2023 Compliance Supplement, set forth by the Executive Office of the President Office of Management and Budget, it was discovered the District did not obtain a contract with Johnson Controls, Inc. for the heating, ventilation, and air-condition (HVAC) construction project. The absence of a contract corresponds to the violation of the Davis-Bacon Act clause and a provision for compliance with the Copeland “Anti-Kickback” Act. Without the legal requirement to follow the Davis-Bacon Act, the contractor was not required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor and pay wages not less than once a week. Cause: Management relied on the contractor’s assurance of their adherence to KSDE’s requirements for construction contracts. Effect: The District did not comply with the Davis-Bacon prevailing wage requirements as set out by KSDE. The contractor was not required to pay their laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. Questioned Costs: None Recommendations: The District should utilize the KSDE’s provided checklist for construction contract and not rely on a non-District individual for compliance. A board appointed individual should provide a secondary review to ensure all requirements are met for all construction contracts being paid with federal funds. Views of Responsible Officials and Planned Corrective Actions: The District agrees with the finding. See separate document for planned corrective actions.