Finding Text
Compliance and significant deficiency in compliance and internal controls over compliance. Major Program: Federally Assisted Airport Development Grant - 20.106. 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 for the project (prevailing wage rates) by the Department of Labor and this requirement must be included in the related contracts. Condition: The requirement that contractors and subcontractors that work on construction contracts submit weekly certified payrolls to the non-federal entity (grantee) and a statement of compliance to ensure that the prevailing wage rates are paid could not be verified. Cause: The City did not have processes or procedures in place to verify that the prevailing wage rate clause was included in construction contracts or to verify based on review of certified payroll reports from the contractor. Because of this, the required language was not included in the contracts, and the wage rates could not be verified. Effect: Department of Transportation could disallow expenditures of future grants. Repeat Finding: No. Recommendation: The City should design process and procedures to verify that all required elements are included in relevant contracts. In addition, a City staff member or designated representative should ensure that the necessary certified payrolls are received and appropriately reviewed. Management's Response: The City will implement policies and procedures to verify that all required elements are included in relevant contracts. The City staff will ensure that all necessary certified payrolls are received and reviewed.