Finding Text
Assistance Listing Number and Title: ALN 14.218, Community Development Block Grants/Entitlement Grants
Federal Agency: U.S. Department of Housing and Urban Development
Federal Award Numbers: B-19-MC-06-0523
Grant period: November 21, 2019 through June 30, 2037
Criteria:
Community Development Block Grants are subject to the Wage Rate Requirements. As a result, contractors and subcontractors are required to submit to a nonfederal entity weekly, for each week in which any contract work is performed, a copy of their payroll and a statement of compliance.
Condition:
Certified payroll were not obtained timely from the general contractor on the project.
Cause:
The Organization had miscommunication between employees regarding responsibility for obtaining the certified payrolls.
Effect:
The Organization could not verify the contractor complied with the wage rate requirements.
Context:
Out of a sample of 25, 6 were selected from the general contractor, and the Organization had not obtained the certified payrolls for any of the selected payrolls from the general contractor. All remaining selected payroll from subcontractors were obtained by the Organization.
Questioned costs:
None
Repeat Finding:
No
Recommendation:
We recommend the Organization clearly define roles and responsibilities for tracking compliance with unique requirements of Federal contracts. This includes implementing a system of review and approval to ensure the compliance has been done.
Views of responsible officials of the auditee:
The Organization agrees with the finding and has started requesting the certified payrolls weekly from the general contractor.