Finding 394660 (2020-011)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2020
Accepted
2024-04-25

AI Summary

  • Core Issue: The Fayetteville Housing Authority could not find all required Davis-Bacon certified payroll reports for the Emergency Grant.
  • Impacted Requirements: Missing documentation prevents verification of compliance with federal labor standards and prevailing wage rates.
  • Recommended Follow-Up: Management should improve record-keeping and conduct regular compliance checks, including worker interviews and payroll reviews.

Finding Text

2020-011 Missing Documentation - Davis-Bacon Certified Payroll Reports Criteria: Requested information should be readily available for audit examination. The Housing Authority is responsible for the proper administration and enforcement of the Federal labor standards provisions on contracts covered by Davis-Bacon requirements, and therefore must maintain all Davis-Bacon certified payroll reports (OMB No. 1235-0008) for the entire length of the contract. Condition: The Fayetteville Housing Authority was unable to locate all of the weekly Davis-Bacon certified payroll reports related to the Emergency Grant. Questioned Costs: Undetermined due to missing documentation. Effect: We are unable to determine that all laborers were paid the prevailing wage rate, as determined by the United States Department of Labor. Cause: Lack of Management oversight. Recommendation: We recommend the Fayetteville Housing Authority’s management place a greater emphasis in safe keeping its records and ensuring that all information requested is readily available for audit examination. We also recommend that the Fayetteville Housing Authority monitor labor standard compliance by conducting interviews with construction workers at the job site, reviews payroll reports, and oversees any additional enforcement actions that may be required.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: Finance and management staff will hold or obtain procurement and section 3 certifications and complete applicable training on contracts covered by Davis-Bacon requirements within 6 months. Fayetteville Housing Authority will keep electronic file documentation and hard copy documentation of required records. All applicable staff will be trained on proper documentation and storage of records. Upper- management will review all contract files for active contracts on a monthly basis and within 30 days of project completion. Responsible Parties: Audra Butler, Interim Deputy Director and FHA Board of Commissioners Finance Committee. Timeline: Training June 17, 2022 Ongoing- Compliance reviews beginning January 2022.

Categories

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 394650 2020-001
    Material Weakness
  • 394651 2020-002
    Material Weakness
  • 394652 2020-003
    Material Weakness
  • 394653 2020-004
    Material Weakness
  • 394654 2020-005
    Material Weakness
  • 394655 2020-006
    Material Weakness
  • 394656 2020-007
    Material Weakness
  • 394657 2020-008
    Material Weakness
  • 394658 2020-009
    Material Weakness
  • 394659 2020-010
    Material Weakness
  • 394661 2020-012
    Material Weakness
  • 394662 2020-013
    Material Weakness
  • 394663 2020-014
    Material Weakness
  • 394664 2020-015
    Material Weakness
  • 394665 2020-016
    Material Weakness
  • 394666 2020-017
    Material Weakness
  • 394667 2020-018
    Material Weakness
  • 971092 2020-001
    Material Weakness
  • 971093 2020-002
    Material Weakness
  • 971094 2020-003
    Material Weakness
  • 971095 2020-004
    Material Weakness
  • 971096 2020-005
    Material Weakness
  • 971097 2020-006
    Material Weakness
  • 971098 2020-007
    Material Weakness
  • 971099 2020-008
    Material Weakness
  • 971100 2020-009
    Material Weakness
  • 971101 2020-010
    Material Weakness
  • 971102 2020-011
    Material Weakness
  • 971103 2020-012
    Material Weakness
  • 971104 2020-013
    Material Weakness
  • 971105 2020-014
    Material Weakness
  • 971106 2020-015
    Material Weakness
  • 971107 2020-016
    Material Weakness
  • 971108 2020-017
    Material Weakness
  • 971109 2020-018
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $2.89M
14.850 Public and Indian Housing $81,392
14.871 Section 8 Housing Choice Vouchers $20,347