Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - 3-26-0039-068-2022; 2022 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes Criteria - According to the wage rate requirements under 40 U.S.C. Sections 3141 to 3148, employees who perform work on federally funded construction projects in excess of $2,000 are required to be paid no less than the prevailing wages and fringe benefits specified by the Department of Labor. Organizations that authorize such projects and finance them with federal funds are required to monitor the contractor's or subcontractor's compliance with such wage requirements. Condition - During the audit, it was noted that the Authority does not have documentation to support that a process is in place to ensure compliance with the wage rate requirements, as described by 40 U.S.C. Sections 3141 to 3148, whether the responsibility is performed by the Authority directly or delegated to construction managers with required monitoring by the Authority. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The Authority did not have documentation to support that a control is in place to ensure review of certified payrolls was being performed to monitor wage rate requirements applicable to federally funded construction projects. In our testing population of one contract, we found no instances where certified payrolls were not prepared. Cause and Effect - No control was in place at the Authority for documenting any monitoring of the wage rate requirements. This lack of review could result in noncompliance with grant requirements or questioned costs. Recommendation - We recommend the Authority obtain, maintain, and review documentation demonstrating that wage rates paid by contractors or subcontractors for construction projects were authorized by the Authority and paid for with federal funds and that the Authority is properly monitoring those contracts for compliance. Views of Responsible Officials and Planned Corrective Actions - A form has been created to document the compliance of wage rate requirements, to be completed by the Authority?s engineering manager. Any third party delegates will be required to be the signatory of compliance, with counter signature by the Authority.