Finding 1146937 (2024-004)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-07-03
Audit: 361449
Auditor: Rea

AI Summary

  • Core Issue: The Airport did not provide documentation proving compliance with federal wage rate requirements for AIP project 8023.
  • Impacted Requirements: Contracts over $2,000 must adhere to prevailing wage rates as per the Davis-Bacon Act and require certified payroll submissions.
  • Recommended Follow-up: Implement controls to ensure all contractor documentation for wage compliance is collected and maintained.

Finding Text

Federal Program: Airport Improvement Program Federal Award Identification Number and Year: All Airport Improvement Program awards, 2021, 2022, 2023, 2024 Assistance Listing Number (ALN): 20.106 Federal Awarding Agency: U.S. Department of Transportation Pass-through Entity: None Repeat Finding: No Material Weakness and Noncompliance – Wage Rate Requirements Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141–3144, 3146, and 3147. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements (which still may be referenced as the Davis-Bacon Act) a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction). This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls) (29 CFR sections 5.5 and 5.6; the A-102 Common Rule (section 36(i)(5)); OMB Circular A-110 (2 CFR Part 215, Appendix A, Contract Provisions); 2 CFR Part 176, Subpart C; and 2 CFR section 200.326). Condition: The Airport was unable to provide documentation to support compliance with wage rate requirements in relation to AIP project 8023. Questioned Costs: None. Identification of How Questioned Costs Were Computed: N/A Cause and Effect: The Airport was not aware that the contracts for AIP project 8023 were applicable to prevailing wage requirements; therefore, the Airport did not obtain certified payrolls for two contracts relating to the project. Without proper controls over wage-rate requirements, there is an increased risk that the Airport, its contractors, and subcontractors are not in compliance with applicable federal regulations. Additionally, noncompliance could result in federal funding being reduced or taken away, or other sanctions imposed by the federal grantor agency. Recommendation: The Airport should implement controls and processes to ensure that all necessary information from contractors is obtained to document compliance with wage rate requirements. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.

Categories

Subrecipient Monitoring Material Weakness Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 570490 2024-004
    Material Weakness
  • 570491 2024-004
    Material Weakness
  • 570492 2024-004
    Material Weakness
  • 570493 2024-004
    Material Weakness
  • 570494 2024-004
    Material Weakness
  • 570495 2024-004
    Material Weakness
  • 570496 2024-004
    Material Weakness
  • 570497 2024-004
    Material Weakness
  • 570498 2024-004
    Material Weakness
  • 570499 2024-004
    Material Weakness
  • 1146932 2024-004
    Material Weakness
  • 1146933 2024-004
    Material Weakness
  • 1146934 2024-004
    Material Weakness
  • 1146935 2024-004
    Material Weakness
  • 1146936 2024-004
    Material Weakness
  • 1146938 2024-004
    Material Weakness
  • 1146939 2024-004
    Material Weakness
  • 1146940 2024-004
    Material Weakness
  • 1146941 2024-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $140,417