Finding 1227441 (2024-002)

Material Weakness Repeat Finding
Requirement
M
Questioned Costs
-
Year
2024
Accepted
2026-08-19

AI Summary

  • Core Issue: The City lacked proper monitoring controls for labor classifications on federally funded construction projects.
  • Impacted Requirements: Non-compliance with Davis-Bacon Act regarding labor classifications and conformance procedures.
  • Recommended Follow-Up: Enhance monitoring procedures by reviewing payroll reports and ensuring all labor classifications are submitted for approval before work starts.

Finding Text

U.S. Environmental Protection Agency ALN 66.468 — Drinking Water State Revolving Fund Cause:The City did not maintain adequate monitoring controls to ensure all labor classifications utilized on federally funded construction projects were included in the applicable wage determination or properly submitted for conformance approval.Effect:The City was not in compliance with Davis-Bacon requirements related to labor classifications and conformance procedures. Based on procedures performed, no indication was noted that affected workers were paid below applicable prevailing wage rates.Questioned Costs:None identified.Recommendation:The City should strengthen monitoring procedures over federally funded construction projects to ensure all labor classifications utilized by contractors and subcontractors are included in the applicable wage determination or properly submitted for conformance approval before work is performed.Views of Responsible Officials.The City relied on the project engineer and contractors to monitor compliance with Davis-Bacon labor classification requirements and was not aware that certain labor classifications utilized on the project were not included in the applicable wage determination or submitted for conformance approval. The City will strengthen monitoring procedures over federally funded construction projects by reviewing certified payroll reports and labor classifications more closely and coordinating with project engineers and contractors to ensure any additional classifications are properly submitted for approval when required.

Corrective Action Plan

Corrective Action Plan:The City will strengthen monitoring procedures over federally funded construction projects by reviewing certified payroll reports and labor classifications for consistency with the applicable wage determination. The City will coordinate with project engineers and contractors to ensure any labor classifications not included in the wage determination are submitted for conformance approval when required.Anticipated Completion Date:Immediately implemented for current and future federally funded construction projects

Categories

Subrecipient Monitoring

Other Findings in this Audit

  • 1227440 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
66.468 DRINKING WATER STATE REVOLVING FUND $1.01M
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $538,100
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $35,000
16.607 BULLETPROOF VEST PARTNERSHIP PROGRAM $6,425