Finding Text
Federal Agency: U.S Department of Transportation Assistance Listing Program: 20.106 Airport Improvement Program Federal Award Nos.: 3-68-0001-018-2017, 3-68-0001-020-2019, 3-68-0001-022-2020, 3-68-0001-023-2020,3-68-0001-024-2020, 3-68-0001-025-2022 Area: Special Tests and Provisions – Wage Rate Requirements Questioned Costs: $ Undeterminable Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts more than $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: For the year ended September 30, 2023, the Authority did not receive and review certified weekly payrolls from contractors and/or subcontractors. Cause: The Authority lacks internal control policies and procedures to obtain required certified weekly payrolls reports from contractors and/or subcontractors to ensure compliance with wage rate requirements. Effect: The Authority is in noncompliance with applicable wage rate requirements. No questioned costs are reported as we were unable to determine the quantitative impact to the program. Recommendation: We recommend the Authority’s responsible personnel to establish internal control policies and procedures to ensure that contractors and/or subcontractors are submitting weekly certified payrolls as required. Views of Responsible Officials and Corrective Action Plan: The Authority agrees with the finding and provides details in its Corrective Action Plan.