Audit 16376

Finding 2022-001 Public and Indian Housing ? Special Tests and Provisions ? Wage Rate Requirements Significant Deficiency in Internal Controls Federal Program: Assistance Listing No. 14.850 Public and Indian Housing Criteria: The Public and Indian Housing program requires that if funds are used for construction activities, contractors used by the Housing Authority of the City of Decatur (DHA) are required to pay employees wages that are at a minimum equal to the Davis-Bacon wages established by the federal government. Condition: During the year under audit, there were two contracts that were subject to the Davis- Bacon wage requirements. Both contracts included the requirements in the contract documents. However, the documentation of compliance with those requirements for one of the contracts were not obtained by DHA. Context: Without obtaining and reviewing the wage reports from the contractor, DHA cannot be certain that the contractor is fulfilling it requirement to pay employees in accordance with the requirements of the Davis-Bacon Act. Cause: DHA did not monitor the contractor properly. Effect: DHA cannot be assured that the contractor complied with the requirements of the Davis- Bacon Act. Questioned Costs: Undetermined. Auditors? Recommendation: We recommend that DHA obtain and review the missing payroll reports from the contractor, and if necessary, follow-up on any non-compliance. DHA should also establish procedures to ensure that required payroll reports are obtained for all contracts subject to the Davis-Bacon wage requirements. DHA Response: DHA failed to obtain the payroll reports from the said contractor. Moving forward Taura L. Denmon, Executive Director of Mechelle Dowdy, Director of Housing will be responsible for receiving and checking Davis-Bacon wage reporting requirements. Staff Contact: Taura L. Denmon, Executive Director Target Completion date: October 31, 2022

Finding 2022-001 Public and Indian Housing ? Special Tests and Provisions ? Wage Rate Requirements Significant Deficiency in Internal Controls Federal Program: Assistance Listing No. 14.850 Public and Indian Housing Criteria: The Public and Indian Housing program requires that if funds are used for construction activities, contractors used by the Housing Authority of the City of Decatur (DHA) are required to pay employees wages that are at a minimum equal to the Davis-Bacon wages established by the federal government. Condition: During the year under audit, there were two contracts that were subject to the Davis- Bacon wage requirements. Both contracts included the requirements in the contract documents. However, the documentation of compliance with those requirements for one of the contracts were not obtained by DHA. Context: Without obtaining and reviewing the wage reports from the contractor, DHA cannot be certain that the contractor is fulfilling it requirement to pay employees in accordance with the requirements of the Davis-Bacon Act. Cause: DHA did not monitor the contractor properly. Effect: DHA cannot be assured that the contractor complied with the requirements of the Davis- Bacon Act. Questioned Costs: Undetermined. Auditors? Recommendation: We recommend that DHA obtain and review the missing payroll reports from the contractor, and if necessary, follow-up on any non-compliance. DHA should also establish procedures to ensure that required payroll reports are obtained for all contracts subject to the Davis-Bacon wage requirements. DHA Response: DHA failed to obtain the payroll reports from the said contractor. Moving forward Taura L. Denmon, Executive Director of Mechelle Dowdy, Director of Housing will be responsible for receiving and checking Davis-Bacon wage reporting requirements. Staff Contact: Taura L. Denmon, Executive Director Target Completion date: October 31, 2022