Audit 392581

Non-compliance with the Davis-Bacon Act (Other Matter) Public Housing Program – Assistance Listing No. 14.850a, Grant Period: Fiscal Year-End June 30, 2025 Criteria The Davis-Bacon Act applies to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Title 29 of the Code of Federal Regulations, Subtitle A, Part 5, Subpart A describes the Davis-Bacon Act and includes a requirement that applicable agencies shall include in their contracts a provision that the contractor or subcontractor comply with those requirements of the Department of Labor regulations (the Davis-Bacon Act). 29 CFR, Subtitle A, Part 5, Subpart A 5.5-A.3 Payrolls and Basic Records 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). Condition and Perspective Five applicable Public Housing Program funded contract vendor files were sampled for compliance with Davis Bacon Act requirements. The Authority was unable to provide copies of certified payrolls for one of the five contracts which the applicable contractors were required to submit for each week work was performed during the fiscal year. The work on this contract was performed and completed early in fiscal year 2025, prior to the issuance of the fiscal year 2024 Independent Auditors’ Report on Compliance for the Major Program and on Internal Control Over Compliance Required by the Uniform Guidance which reported this Prior Year Finding 2024-002 – Non-compliance with the Davis-Bacon Act. Questioned Costs – None noted Cause Failure to monitor active contracts to ensure compliance with federal Davis Bacon Act requirements early during the fiscal year. Effect Non-compliance with the Davis-Bacon Act early during the fiscal year.Recommendation We recommend that the Authority attain weekly certified payrolls from contractors as applicable for all federally funded contracts subject to the Davis-Bacon Act. Management’s Response The Authority will attain weekly certified payrolls from contractors as applicable for all federally funded contracts subject to the Davis-Bacon Act. The Authority’s Executive Director, Africa Porter, has assumed the responsibility of executing this corrective action as of April 1, 2026.