Finding Text
Criteria or specific requirement: Per Part 4 of the Office of Management and Budget (OMB) Compliance Supplement, recipients of federal funds under the Highway Planning and Construction Program must ensure that 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 of the project (prevailing wage rates) by the Department of Labor (DOL) (40 USC 3141–3144, 3146, and 3147. Condition: The County of Lassen did not retain supporting documentation demonstrating that it verified compliance with the wage rate requirements during the fiscal year ended June 30, 2023. Questioned costs: None Context: For the three projects selected, the County was unable to provide documentation showing that the wage rate requirements were followed. Cause: The County did not have adequate procedures in place to ensure that wage rate compliance documentation was collected and retained for federally funded construction projects. Effect: Without proper documentation, the County cannot demonstrate compliance with federal wage rate requirements, increasing the risk of noncompliance and potential disallowance of related costs. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the County of Lassen implement procedures to ensure that all required wage rate documentation is obtained and retained for all applicable federally funded projects. This includes certified payrolls and evidence of wage rate verification. Views of responsible officials: There is no disagreement with the audit finding