Finding Text
2023-002 – SPECIAL TESTS AND PROVISIONS – WAGE RATE REQUIREMENTS
Other Matter/Significant Deficiency
U.S. Department of Housing and Urban Development
CFDA #: 14.850 – Public and Indian Housing Program
CRITERIA
The Davis-Bacon Act (DBA) applies to each federal government or District of Columbia contract in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works and requires that contractors and subcontractors pay their laborers and mechanics employed under such contracts no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. The DBA’s prevailing wage provisions apply to “Related Acts,” under which federal agencies assist construction projects through grants, loans, loan guarantees, and insurance. The contractor shall submit weekly for each week in which any contract work is performed…
The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), (29 CFR 5.5 (a)(3))
CONDITION
The Authority did not obtain copies of the certified payroll related to vacancy / apartment restoration services.
CAUSE
The Authority was unaware that the DBA applied to this vendor.
EFFECT
Failure to collect the weekly certified payroll may result in employee’s being paid less than the prevailing wage.
QUESTIONED COSTS
None
CONTEXT
Certified payrolls are required to be obtained for each week the contractor performs work. This vendor provided vacancy / apartment restoration services throughout the year.
REPEAT FINDING
Not a repeat finding.
RECOMMENDATION
We recommend that the Authority obtain copies of the weekly certified payrolls for each contract relating to construction, alteration or repair projects.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.