Finding 394677 (2021-017)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2021
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: Improve record-keeping practices and conduct regular compliance checks, including worker interviews and payroll reviews.

Finding Text

2021-017 Missing Documentation - Davis-Bacon Certified Payroll Reports Federal Awards: 14-872 Capital Fund Program 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 (0MB 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 oversight by prior Fayetteville Housing Authority Management. 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: As a result of a staffing transition, the present administration encountered challenges in locating and furnishing Davis-Bacon certified payroll reports. To address this concern, the Executive Director and Director of Finance are intensifying their efforts to enhance the preservation of records and ensuring that all requested information is readily accessible for audit scrutiny. The Executive Director will be overseeing labor standard compliance by conducting onsite interviews with construction workers, scrutinizing payroll reports, and overseeing any necessary additional enforcement actions as suggested.

Categories

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

Other Findings in this Audit

  • 394668 2021-008
    Material Weakness Repeat
  • 394669 2021-009
    Material Weakness Repeat
  • 394670 2021-010
    Material Weakness Repeat
  • 394671 2021-011
    Material Weakness Repeat
  • 394672 2021-012
    Material Weakness Repeat
  • 394673 2021-013
    Significant Deficiency Repeat
  • 394674 2021-014
    Significant Deficiency Repeat
  • 394675 2021-015
    Material Weakness Repeat
  • 394676 2021-016
    Material Weakness Repeat
  • 394678 2021-018
    Material Weakness Repeat
  • 394679 2021-019
    Material Weakness Repeat
  • 394680 2021-020
    Significant Deficiency
  • 394681 2021-021
    Significant Deficiency Repeat
  • 971110 2021-008
    Material Weakness Repeat
  • 971111 2021-009
    Material Weakness Repeat
  • 971112 2021-010
    Material Weakness Repeat
  • 971113 2021-011
    Material Weakness Repeat
  • 971114 2021-012
    Material Weakness Repeat
  • 971115 2021-013
    Significant Deficiency Repeat
  • 971116 2021-014
    Significant Deficiency Repeat
  • 971117 2021-015
    Material Weakness Repeat
  • 971118 2021-016
    Material Weakness Repeat
  • 971119 2021-017
    Significant Deficiency Repeat
  • 971120 2021-018
    Material Weakness Repeat
  • 971121 2021-019
    Material Weakness Repeat
  • 971122 2021-020
    Significant Deficiency
  • 971123 2021-021
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $1.30M
14.850 Public and Indian Housing $649,822
14.U03 Component Unit- Blended $307,554
14.872 Public Housing Capital Fund $255,092
14.871 Section 8 Housing Choice Vouchers $201,613
14.879 Mainstream Vouchers $53,615
14.U02 Tenant Based Rental Assistance $45,549
14.U01 Esg- Covid $19,804
14.U04 Business Activities $15,136
14.850 Public Housing Cares Act Fund $6,722
14.896 Family Self-Sufficiency Program $0