Finding 1093628 (2024-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-30

AI Summary

  • Core Issue: A contract for carpentry services was awarded below the required prevailing wage rates.
  • Impacted Requirements: Compliance with 24CFR sections 905 and DOL regulations was not met, including missing HUD-11 forms and certified payroll reports.
  • Recommended Follow-Up: Ensure all contracts adhere to prevailing wage laws and implement a system to track required documentation for compliance.

Finding Text

We selected 9 contracts for the Capital fund Program. One of the contracts selected, although required to adhere to the prevailing wage rates and benefits, accepted a bid for general carpentry services that contained a hourly rate less than prevailing wages for the locality the Authority is located in. The Authority did not follow the compliance requirements of 24CFR sections 905 and Department of Labor (DOL) (40 USC 3141,3144,3146,3147). Additionally, they could not provide the required HUD-11 form "Record of Employee Interview" and certified payroll report related to the work performed by the contractor.

Categories

Procurement, Suspension & Debarment HUD Housing Programs

Other Findings in this Audit

  • 517186 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.52M
14.850 Public Housing Operating Fund $1.24M