Vail Unified School District No. 20

Finding Number: 2024‐001 Repeat Finding: No Program Name/Assistance Listing Title: Impact Aid Assistance Listing Number: 84.041 Federal Agency: Department of Education Federal Award Number: N/A Pass‐Through Agency: N/A Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Criteria According to Federal guidelines, §7007 construction funds, as well as any §7002 or §7003(b) funds expended for construction or minor remodeling, are subject to Wage Rate Requirements (20 USC 1232b).  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 (DOL) (40 USC 3141–3144, 3146, and 3147). Condition Certified payroll from the contractor or subcontractor was not submitted or reviewed for contracts in excess of $2,000 financed by Impact Aid funds. Cause The  District  was  unaware  that  Impact  Aid  construction  expenditures  were  subject  to  wage  rate  requirements. Effect The District could not demonstrate that prevailing wage rates were paid on all applicable projects during the year. Context For four Impact Aid funded projects, the District did not obtain or review contractor or subcontractor certified payroll. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should review all federally‐funded projects and determine which are subject to prevailing wage  rate  requirements.  When  applicable,  the  District  should  obtain  certified  payroll  from  contractors and subcontractors to determine that prevailing wage rate requirements are met. Views of Responsible Officials See Corrective Action Plan.