Posted: Tuesday, October 22, 2013
District Conducts Audit to Avoid Potential Financial Penalty Due to Payroll Documentation Issues by Contractors and Sub-Contractors
A recently completed internal audit of how contractors and sub-contractors paid workers on nine federally-funded school construction projects was undertaken to determine if contractors and sub-contractors adhered to the Davis-Bacon Act, which requires workers on federally funded jobs to be paid at least the local prevailing wage. The district administration initiated this proactive step to avoid potential financial penalties because of payroll documentation issues by contractors and sub-contractors.
Most of the payroll errors were related to incomplete worker time sheets turned in by contractors and sub-contractors. Many errors were because workers often spent part of their work week on projects not related to the school district, so those days were erroneously left blank on the time sheets. Also, time sheets were signed in an unacceptable ink color.
The district’s facilities and finance departments worked with contractors and sub-contractors to resolve the payroll documentation issues. In cases that could not be resolved for three sub-contractors, the contractors for whom the sub-contractors worked signed indemnification agreements, so that the contractors, not the district, would be responsible for any potential financial penalties. The three sub-contractors are no longer in business.
The $29.2 million in federal stimulus paid for nine projects between June 2010 and September 2012. Six of the projects were additions of kindergarten wings at elementary schools – Bell’s Crossing, Brushy Creek, Mauldin, Pelham Road, Skyland, and Woodland. Other projects were construction of Monarch Elementary School, replacement of the HVAC system at Greer High, and renovations of athletic facilities at Hillcrest High.