Finding 1167425 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-31

AI Summary

  • Core Issue: The Housing Authority did not provide certified payrolls for a contract under the Davis-Bacon Act, which is required for federally funded construction projects.
  • Impacted Requirements: Weekly submission of certified payrolls and compliance statements for contracts over $2,000, as mandated by the Davis-Bacon Act.
  • Recommended Follow-Up: Implement a monitoring system to ensure timely submission of certified payrolls and compliance with federal requirements to avoid repeat findings.

Finding Text

Assistance Listing No. 14.850a, Low Income Public Housing, Grant Period: Fiscal Year-End March 31, 2025 CRITERIA: The Davis-Bacon Act applies to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Title 29 of the Code of Federal Regulations, Subtitle A, Part 5, Subpart A 5.5-A.3 Payrolls and Basic Records includes a requirement for the contractor or subcontractor to submit to the non-federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). CONDITION AND PERSPECTIVE: The Authority’s Capital Fund Program funded one contract during fiscal year 2024 for which Davis Bacon Act requirements applied. The applicable contract began in May of 2023 and continued through the fiscal year ended March 31, 2024 into fiscal year 2025. The Authority was unable to provide copies of certified payrolls applicable to any weeks after September of 2023. QUESTIONED COSTS: None noted CAUSE: Failure to monitor active contracts to ensure compliance with federal Davis Bacon Act requirements. EFFECT: Non-compliance with the Davis-Bacon Act. CURRENT YEAR STATUS: The Housing Authority was unable to provide the certified payrolls for the construction contract that continued into fiscal year 2025. This is a repeat finding.

Corrective Action Plan

The Greenwood Housing Authority provided a Corrective Action Plan with the audit packet to REAC indicating the housing will attain weekly certified payrolls from contractors as applicable for all federally funded contracts subject to the Davis-Bacon Act. The Jackson Office of Public Housing requires evidence of the following compliance efforts listed in the Corrective Action Plan: Contact Person Responsible For Corrective Action: Dr. Earl V. Hall, Executive Director Anticipated Completion Date: Fiscal Year Ending March 31, 2026

Categories

HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1167424 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC AND INDIAN HOUSING $1.52M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.33M
14.872 PUBLIC HOUSING CAPITAL FUND $140,213