FAC Explorer

Finding 1167903 (2024-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-01-06
Audit: 379376
Organization: City of Seadrift Texas (TX)
Auditor: GOLDMAN HUNT & NOTZ LLP

AI Summary

  • Core Issue: Third-party grant administrators claimed to have certified payrolls but could not provide them during the audit.
  • Impacted Requirements: The construction contract lacked necessary prevailing wage rate clauses as required by the Davis-Bacon Act.
  • Recommended Follow-up: Ensure all required documentation is collected and review contracts for compliance with federal regulations.

Finding Text

In the course of the audit, it was determined that the city’s third-party grant administrators submitted signed reimbursement requests in which they certified that the required certified payrolls were on file. However, when requested during the audit, the city and the third-party grant administrators were unable to provide copies of the certified payrolls to support these claims. Additionally, it was found that construction contract for the project did not include the required prevailing wage rate clauses as mandated by the Davia-Bacon Act and related federal regulations. These deficiencies constitute noncompliance with the federal status, regulations, and terms and conditions of the grant award.

Corrective Action Plan

Staff Training: Provide training for multiple City staff on reviewing, interpreting, and administering grant contracts to ensure compliance with all requirements. Policies and Procedures: Develop and maintain written policies and procedures for grant management to promote consistency and accountability across all projects. Oversight of Third-Party Administrators: Implement additional review processes to ensure accuracy and compliance in work performed by third-party grant administrators. Documentation of Roles: Clearly document roles and responsibilities between the City and third-party contractors to ensure all tasks and obligations are fully covered.

Categories

Cash Management

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $3.88M
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $2.58M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.96M
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $1.53M
87.052 GULF COAST ECOSYSTEM RESTORATION COUNCIL OIL SPILL IMPACT PROGRAM $118,709
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $82,846
97.067 HOMELAND SECURITY GRANT PROGRAM $67,022
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $60,854