Audit 390755

Federal Program Economic Adjustment Assistance Program (AL 11.307) U.S Department of Commerce Special Tests Criteria 29 CFR section 5.5 includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). Condition Payrolls were not submitted weekly and one payroll was not properly signed. Questioned Costs None Context A sample of 16 certified payroll were selected for testing. We noted 5 of the 16 payrolls were submitted 6-8 weeks after the work was performed. We also noted 1 of the 16 payrolls tested was not certified by the contractor. Cause Management oversight. Effect The City was not in compliance with federal wage requirements. Repeat Finding Yes. Prior audit finding 2024-004 Recommendation The City should implement procedures to ensure certified payrolls are received weekly from all contractors or subcontractors for each week in which work was performed. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.