Finding Text
2025-001 ALN 14.850 – Public Housing Operating Fund – Wage Rate Requirements
Condition and Criteria:
The Authority could not provide necessary documentation such as the weekly certified
payroll reports and employee interviews as required by the Department of Labor’s
Davis-Bacon Act.
The Davis-Bacon Act requires a contractor whose contract is over $2,000 to provide
weekly certified payrolls to prove that they are paying prevailing wage rates.
Amount of Questioned Costs: None.
Context: The Authority was not obtaining and maintaining in its records proof that Davis Bacon
Wage Rate requirements were being followed.
Cause:
No procedure exists for projects to follow up on stipulations within the contract
requiring contractors to submit weekly wage reports, nor does a procedure exist
whereby the Authority interviews contracted employees to ensure they are being paid
fairly.
Effect:
The Authority does not have proper controls in place to ensure compliance with the
Department of Labor’s Davis-Bacon Act. As a result, contractors could be underpaying
workers while working on Authority projects.
Auditor’s Recommendation:
We recommend that the Authority implement procedures to follow up on the
obligations of contractors to produce weekly wage reports and compare them with
prevailing wage rates. Also, make physical inspections and interview employees to
ascertain that information is accurate.
Grantee Response: Management acknowledges the finding and will follow the auditor’s recommendation.