Finding Text
Federal Program
Airport Improvement Program (AL 20.106)
U.S Department of Transportation
Federal Award No: 3-27-0032-015-2022, 3-27-0032-16-23, 3-27-0032-17-23
Federal Award Year: 2023, 2024
Passed Through Minnesota Department of Transportation
Special Tests
Criteria
29 CFR section 5.5 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).
Condition
For two subcontractors, the required certified payrolls were not submitted to the City or the City’s Engineer for
the project.
Questioned Costs
None
Context
A sample of five weeks during the construction period was selected for testing and all certified payrolls for
these five weeks were requested. The City’s engineer, who monitors the certified payrolls process, did not
have the certified payrolls for two subcontractors who performed work during this five-week period. The
engineer was able to provide all the other certified payrolls requested.
Cause
Management oversight.
Effect
Employees of the subcontractors might not have received proper wages.
Repeat Finding
No
Recommendation
The City should implement procedures to ensure certified payrolls are received weekly from all contractors or
subcontractors for each week in which work was performed.
Views of Responsible Officials and Planned Corrective Actions
The City agrees with the recommendation and will review its policies and procedures.