Finding Text
2023-001 – Investments for Public Works and Economic Development Facilities - Assistance Listing No. 11.300; Grant Period - For the year ended December 31, 2023
Condition: The Organization did not obtain certified payrolls from certain contractors for expenses that were claimed under the federal program.
Criteria: The Organization is required to notify contractors and subcontractors of the requirements to comply with the federal wage rate requirements and obtain copies of certified payrolls when labor is involved.
Cause: The Organization did not have the necessary procedures in place to request the required certified payrolls for 3 of 6 invoices selected for testing.
Effect of Condition: The Organization was unable to provide certified payrolls for 3 of 6 invoices where the wage rate requirements were applicable.
Questioned Cost: None.
Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample.
Recommendation: The Organization's should enact procedures to request certified payrolls from all contractors when applicable in order to comply with the federal wage rate requirements.
Views of Responsible Officials and Planned Corrective Actions: The STN management team is reviewing all financial, audit, and program regulations regarding the Davis Bacon Act (federal) and prevailing wage (state) requirements to ensure STN is compliant.