DESOTO PARISH SCHOOL BOARD

Reference # and title: 2021-002 Controls and Compliance over Davis Bacon Act Federal program and specific federal award identification: CFDA Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education Education Stabilization 84.425D 2021 Criteria or specific requirement: In accordance with the Davis Bacon Act at 29 CFR part 5, for construction contracts in excess of $2,000, the School Board is required to provide the prevailing wage rates to the potential contractors and include language in the contracts that all contractors or subcontractors must pay wages that are not less than the prevailing wage rates. Additionally, the School Board is required to perform reviews of contractors and subcontractors wages paid to construction workers to ensure amounts being paid are in accordance with the prevailing wage rates for the related work performed. This review includes obtaining weekly payroll reports and performing interviews of contractors? and subcontractors? employees in such frequency as necessary to assure compliance with the Davis Bacon Act. Condition found: The School Board started construction projects to change and update the HVAC systems for two schools in the District using Education Stabilization funds. The School Board did not provide the prevailing wage rates to the contractor nor did they include the required language in the contracts. It was also noted that the School Board did not receive certified weekly payroll reports from the contractor. Context: This finding appears to be systemic. Possible asserted effect (cause effect): Cause: This is the first time the School Board received federal funds to be used for construction and therefore was not trained adequately on Davis Bacon Act procedures. Effect: The School Board did not meet all federal compliance requirements over special tests and provisions. Recommendations to prevent future occurrences: The School Board should establish procedures to ensure employees are adequately trained on Davis Bacon requirements.. Origination date and prior year reference (if applicable): This finding originated fiscal year ended June 30, 2021. View of responsible official: When ESSER funds originated, we continually asked questions about allowable expenses and were assured by the Louisiana Department of Education (LDOE) that our plans were allowable. New requirements necessitated State approval for any equipment or construction projects using ESSER funds. When we submitted for approval, it was granted by the State without question or additional guidance provided. After the projects were finished and the ESSER funds were spent for the projects, we began to hear about Davis Bacon requirements. The School Board had never used federal funds for construction projects before and we were therefore unaware of the additional requirements. We acted in good faith based on guidance and approval for the expenditures. Going forward, we will include the Davis Bacon requirements in our bid documents/contracts and require certified weekly contractor payrolls for projects using federal funds.

Reference # and title: 2021-002 Controls and Compliance over Davis Bacon Act Federal program and specific federal award identification: CFDA Number Award Year FEDERAL GRANTER/ PASS THROUGH GRANTOR/PROGRAM NAME United States Department of Education; passed through Louisiana Department of Education Education Stabilization 84.425D 2021 Condition: In accordance with the Davis Bacon Act at 29 CFR part 5, for construction contracts in excess of $2,000, the School Board is required to provide the prevailing wage rates to the potential contractors and include language in the contracts that all contractors or subcontractors must pay wages that are not less than the prevailing wage rates. Additionally, the School Board is required to perform reviews of contractors and subcontractors wages paid to construction workers to ensure amounts being paid are in accordance with the prevailing wage rates for the related work performed. This review includes obtaining weekly payroll reports and performing interviews of contractors? and subcontractors? employees in such frequency as necessary to assure compliance with the Davis Bacon Act. The School Board started construction projects to change and update the HVAC systems for two schools in the District using Education Stabilization funds. The School Board did not provide the prevailing wage rates to the contractor nor did they include the required language in the contracts. It was also noted that the School Board did not receive certified weekly payroll reports from the contractor. Corrective action planned: We will include the Davis Bacon requirements in our bid documents/contracts and require certified weekly contractor payrolls for projects using federal funds. Person responsible for corrective action: Mrs. Donayle Ashworth, Director of Business Services Telephone: (318) 872-2836 DeSoto Parish School Board Fax: (318) 872-1324 201 Crosby Street Mansfield, Louisiana 71052 Anticipated completion date: April 2022

GSA_MIGRATION

GSA_MIGRATION