Audit 24564

2022-002: Material Weakness ? Repeat Finding: Davis-Bacon Act Federal Assistance Listing Number 20.106 ? Airport Improvement Program Criteria: 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). Non-Federal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Proper documentation is not maintained by the Authority to verify compliance with Davis-Bacon. There were nine grant draws during fiscal year 2023, which were subject to Davis-Bacon requirements. We selected all nine payments for testing. The Authority was unable to provide the required payroll certifications for three of the nine selections, resulting in an error rate of 33%. Effect: The Authority is not in compliance with Davis-Bacon requirements. Questioned Costs: N/A Cause: Lack of centralized storage/ filing. There was also employee turnover and transfers from the contract compliance department. As a result, controls and procedures were not consistently applied. Repeat Finding: 2021-003 Recommendation: We recommend the Authority implement controls to improve monitoring of contractor compliance and records retention to demonstrate compliance with these requirements. Management?s response: See Corrective Action Plan

2022-002: Material Weakness ? Repeat Finding: Davis-Bacon Act Federal Assistance Listing Number 20.106 ? Airport Improvement Program Criteria: 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). Non-Federal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations. This includes a requirement for the contractor or subcontractor to submit to the Non-Federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). In addition, according to 2 CFR Part 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Proper documentation is not maintained by the Authority to verify compliance with Davis-Bacon. There were nine grant draws during fiscal year 2023, which were subject to Davis-Bacon requirements. We selected all nine payments for testing. The Authority was unable to provide the required payroll certifications for three of the nine selections, resulting in an error rate of 33%. Effect: The Authority is not in compliance with Davis-Bacon requirements. Questioned Costs: N/A Cause: Lack of centralized storage/ filing. There was also employee turnover and transfers from the contract compliance department. As a result, controls and procedures were not consistently applied. Repeat Finding: 2021-003 Recommendation: We recommend the Authority implement controls to improve monitoring of contractor compliance and records retention to demonstrate compliance with these requirements. Management?s response: See Corrective Action Plan