Audit 364608

FY End
2025-03-31
Total Expended
$859,053
Findings
2
Programs
2
Year: 2025 Accepted: 2025-08-20

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
574020 2025-001 Material Weakness - N
1150462 2025-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.850 Public Housing Operating Fund $699,053 Yes 1
14.872 Public Housing Capital Fund $160,000 - 0

Contacts

Name Title Type
N2KFYHC5FB43 Katherine Speight Auditee
2297233446 Roy W. Henderson Jr. Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: see Form page De Minimis Rate Used: Y Rate Explanation: Auditee did use the de minimis cost rate 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 March 31, 2025. 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.
Title: Note 2 – Summary of Significant Accounting Policies Accounting Policies: see Form page De Minimis Rate Used: Y Rate Explanation: Auditee did use the de minimis cost rate 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.

Finding Details

2025-001 ALN 14.850 – Public Housing Operating Fund – Wage Rate Requirements Condition and Criteria: The Authority could not provide necessary documentation such as the weekly certified payroll reports and employee interviews as required by the Department of Labor’s Davis-Bacon Act. The Davis-Bacon Act requires a contractor whose contract is over $2,000 to provide weekly certified payrolls to prove that they are paying prevailing wage rates. Amount of Questioned Costs: None. Context: The Authority was not obtaining and maintaining in its records proof that Davis Bacon Wage Rate requirements were being followed. Cause: No procedure exists for 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: The Authority does not have proper controls in place to ensure compliance with the Department of Labor’s Davis-Bacon Act. As a result, contractors could be underpaying workers while working on Authority projects. 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 information is accurate. Grantee Response: Management acknowledges the finding and will follow the auditor’s recommendation.
2025-001 ALN 14.850 – Public Housing Operating Fund – Wage Rate Requirements Condition and Criteria: The Authority could not provide necessary documentation such as the weekly certified payroll reports and employee interviews as required by the Department of Labor’s Davis-Bacon Act. The Davis-Bacon Act requires a contractor whose contract is over $2,000 to provide weekly certified payrolls to prove that they are paying prevailing wage rates. Amount of Questioned Costs: None. Context: The Authority was not obtaining and maintaining in its records proof that Davis Bacon Wage Rate requirements were being followed. Cause: No procedure exists for 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: The Authority does not have proper controls in place to ensure compliance with the Department of Labor’s Davis-Bacon Act. As a result, contractors could be underpaying workers while working on Authority projects. 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 information is accurate. Grantee Response: Management acknowledges the finding and will follow the auditor’s recommendation.