FAC Explorer

Audit 29316

FY End
2022-09-30
Total Expended
$1.34M
Findings
2
Programs
3
Organization: Housing Authority of the City of Williamson (WV)
Year: 2022 Accepted: 2023-06-22
Auditor: Henderson & Pilleteri LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
29084 2022-001 Significant Deficiency - N
605526 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $790,106 Yes 1
14.872 Public Housing Capital Fund $546,277 - 0
94.006 Americorps $3,016 - 0

Contacts

Name Title Type
RJNBMEF6KDK3 Mary Kern Auditee
3042353270 Roy W. Henderson Jr. Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1 Basis of Presentation The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the Authority under programs of the federal government for the year ended September 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. Note 2 Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Authority has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.

Finding Details

Finding 2022-001
2022-001 ALN 14.850 ? Public & Indian Housing ? Special Tests & Provisions ? Wage Rate Requirements Criteria: The wage rate requirements (also known as the Davis-Bacon Act) apply to construction activities over $2,000 within public housing. As part of these requirements, non-federal entities are required to include in any applicable contracts, a provision that the contractor or subcontractor shall comply with the wage rate requirements and the Department of Labor (DOL) regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). The requirements include a provision requiring contractors and subcontractors submit to the non-federal entity weekly, for each week where any contract work has been 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). Condition: For the fiscal year ended September 30, 2022, we tested wage rate requirements within the Authority?s Public and Indian Housing Program and were unable to obtain the necessary documentation for the one and only ongoing contract where wage rate requirements were required. Cause: Internal controls over wage rate requirements compliance are weak. No procedure exists for Public and Indian Housing Program projects to follow up on stipulations within the contract requiring contractors to submit weekly wage reports, nor does a procedure exist whereby the Authority interviews contracted employees to ensure they are being paid fairly. Effect or Potential Effect: Contractors and subcontractors who are providing construction-related services to the Authority could be paying their employees below the local prevailing wages and fringe benefits paid on projects of a similar character, as defined by the Department of Labor. Questioned Costs: N/A Context: As a result of only one Public and Indian Housing Program contract being required to comply with wage rate requirements during the year-end September 30, 2022, 100% of the population had control deficiencies and a compliance exception, and no additional opportunities for sampling were available. Auditor?s Recommendation: We recommend that the Authority implement procedures to follow up on the obligations of contractors to produce weekly wage reports and compare them with prevailing wage rates. Also, make physical inspections and interview employees to ascertain that the information is accurate. Grantee Response: Management acknowledges the finding and will follow the auditor?s recommendation.
Finding 2022-001
2022-001 ALN 14.850 ? Public & Indian Housing ? Special Tests & Provisions ? Wage Rate Requirements Criteria: The wage rate requirements (also known as the Davis-Bacon Act) apply to construction activities over $2,000 within public housing. As part of these requirements, non-federal entities are required to include in any applicable contracts, a provision that the contractor or subcontractor shall comply with the wage rate requirements and the Department of Labor (DOL) regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). The requirements include a provision requiring contractors and subcontractors submit to the non-federal entity weekly, for each week where any contract work has been 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). Condition: For the fiscal year ended September 30, 2022, we tested wage rate requirements within the Authority?s Public and Indian Housing Program and were unable to obtain the necessary documentation for the one and only ongoing contract where wage rate requirements were required. Cause: Internal controls over wage rate requirements compliance are weak. No procedure exists for Public and Indian Housing Program projects to follow up on stipulations within the contract requiring contractors to submit weekly wage reports, nor does a procedure exist whereby the Authority interviews contracted employees to ensure they are being paid fairly. Effect or Potential Effect: Contractors and subcontractors who are providing construction-related services to the Authority could be paying their employees below the local prevailing wages and fringe benefits paid on projects of a similar character, as defined by the Department of Labor. Questioned Costs: N/A Context: As a result of only one Public and Indian Housing Program contract being required to comply with wage rate requirements during the year-end September 30, 2022, 100% of the population had control deficiencies and a compliance exception, and no additional opportunities for sampling were available. Auditor?s Recommendation: We recommend that the Authority implement procedures to follow up on the obligations of contractors to produce weekly wage reports and compare them with prevailing wage rates. Also, make physical inspections and interview employees to ascertain that the information is accurate. Grantee Response: Management acknowledges the finding and will follow the auditor?s recommendation.