Finding ref number: 2025-001 Finding caption: The Authority did not have adequate internal controls and did not comply with federal wage rate requirements. Name, address, and telephone of Authority contact person: Monica Lough, Director of Finance 285 Technology Center Way, Suite 202 Wenatchee, WA 9...
Finding ref number: 2025-001 Finding caption: The Authority did not have adequate internal controls and did not comply with federal wage rate requirements. Name, address, and telephone of Authority contact person: Monica Lough, Director of Finance 285 Technology Center Way, Suite 202 Wenatchee, WA 98801 (509) 884-4700 Corrective action the auditee plans to take in response to the finding: (If the auditee does not concur with the finding, the auditee must list the reasons for disagreement). The Port Authority will strengthen its internal controls over compliance with Davis-Bacon and other federal prevailing wage requirements for federally funded construction projects. The Port Authority has hired a Contract Specialist with experience in federal contracting and compliance. This position will provide an internal compliance function for federally funded projects and will assist in ensuring that required documentation is obtained, reviewed, and retained regardless of whether certain project administration responsibilities are delegated to an engineer, architect, construction manager, or other consultant. The Port Authority is also developing written procedures for federal prevailing wage compliance. At a minimum, the procedures will establish the following controls: • Clearly identify responsibility for Davis-Bacon and other applicable federal labor compliance requirements at the beginning of each federally funded project, including responsibilities assigned to consultants and Port Authority staff. • Require timely collection of certified payroll reports from contractors and all applicable subcontractors for each week in which covered work is performed. • Establish a documented process for reviewing certified payroll reports for completeness and compliance with applicable wage determinations and federal requirements. • Maintain a tracking system identifying required certified payroll reports, reports received, reports reviewed, outstanding documentation, and follow-up performed. • Require Port Authority oversight of compliance activities performed by contracted engineers, architects, construction managers, or other consultants rather than relying solely on the consultant’s project files or representations. • Incorporate compliance verification into the payment process so that outstanding certified payroll or other required documentation is identified and addressed before applicable contractor payments are approved. • Maintain prevailing wage and federal compliance documentation in a centralized Port Authority project file that is accessible for grant monitoring and audit purposes. • Provide appropriate training to Port Authority employees responsible for administering or overseeing federally funded projects. For the projects included in the 2025 audit, the Port Authority has subsequently obtained the outstanding prevailing wage documentation. Based on the documentation collected and reviewed, no workers have been identified as having been paid less than the applicable prevailing wage requirements. These corrective measures are intended to ensure that the Port Authority maintains direct oversight and sufficient documentation to demonstrate compliance with federal wage requirements throughout the life of a federally funded project, including when specific compliance functions are delegated to outside consultants. Anticipated date to complete the corrective action: December 31, 2026