Finding Text
Criteria or Specific Requirement: Special Tests
Contracts for the construction of affordable housing with 12 or more HOME-assisted units are required to comply with the Wage Rate Requirements (42 USC 12836).
Condition: The Agency did not have adequate internal controls designed to ensure that wage rate requirements are met in accordance with compliance requirements.
Questioned Costs: None
Context: During our testing, we noted the following exceptions related to wage rate requirements.
• For two of the five projects, the Agency does not have a monitoring process in place to ensure that the consultant hired to perform the duties related to certified payrolls is done correctly and in compliance with federal requirements.
• For one of the five projects, the Agency was unable to provide supporting documentation evidencing compliance with wage rate requirements.
Cause: The Agency did not sufficiently monitor controls to ensure compliance with wage rate requirements.
Effect: The Agency is not in compliance with wage rate requirements.
Repeat Finding: No
Recommendation: We recommend that the Agency reviews the controls in place to ensure that
wage rate requirements are met.
Views of Responsible Officials: There is no disagreement with the audit finding.