Finding Text
Federal Award U.S. Department of Transportation; Highway Planning and Construction; Assistance Listing Number 20.205 Criteria In accordance with Title 2 of the Code of Federal Regulations (2 CFR) section 200.303, the City must establish andmaintain effective internal controls over federal awards that provide reasonable assurance of compliance with federal statutes, regulations, and the terms and conditions of the award. Condition During our testing of five certified payroll reports, we noted the reports maintained by the City did not include certification of the payroll by the contractor. Context The agreement with the contractor requires a copy of the payroll and statement of compliance be submitted to the City weekly. We selected five weeks for testing and found that all five weeks did not have a signed statement of compliance. Cause The City did not maintain the signed statement of compliance submitted by the contractor. Effect The absence of the signed statement of compliance with the certified payroll reports increases the risk that errors or irregularities in compliance with federal program requirements may not be detected and corrected in a timely manner. Questioned Costs No costs are questioned. Identification as Repeat Finding This is not a repeat finding from the prior year. Recommendation We recommend the City strengthen procedures to ensure proper documentation is maintained to demonstrate compliance with the Uniform Guidance requirements. View of Responsible Officials Management agrees with the comment and will ensure a process is in place for the receipt of signed certified payrolls.