Finding 47696 (2022-005)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-07-16
Audit: 49041
Organization: City of Pendleton, Oregon (OR)

AI Summary

  • Core Issue: Contractors for barracks improvements did not follow prevailing wage provisions, affecting approximately $118k in costs.
  • Impacted Requirements: Contracts should comply with prevailing wage standards to ensure proper funding and compliance.
  • Recommended Follow-Up: Implement additional reviews and procedures to ensure all contracts meet prevailing wage requirements.

Finding Text

Condition and criteria: There were contracting issues with some of the contractors performing barracks improvements and none of the contracts were performed under prevailing wage provisions, as required. The costs appear to be allowable costs and activities, but approximately $118k should have been performed under prevailing wage standards, which is material to the program. Cause: There were contracting issues with the contractors, and it appears the City was not effectively monitoring this requirement. Context and Effect: The costs appear to be allowable costs and activities, but approximately $118k should have been performed under prevailing wage standards, which is material to the program. Auditor?s recommendation: We recommend that additional reviews and procedures be put in place to ensure that all contracts with prevailing wage requirements are performed accordingly. Management?s response: Economic Development & Airport Director has clearly instructed new Airport Manager on City?s purchasing procedures and stressed the importance of abiding by them.

Corrective Action Plan

DEPARTMENT OF TRANSPORTATION Airport Improvement Program ? CARES Act Compliance and Material Weakness ? Special Tests 2022-005 Management?s response: Economic Development & Airport Director has clearly instructed new Airport Manager on City?s purchasing procedures and stressed the importance of abiding by them.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles Special Tests & Provisions

Other Findings in this Audit

  • 47697 2022-006
    Significant Deficiency
  • 47698 2022-007
    Significant Deficiency
  • 624138 2022-005
    Material Weakness
  • 624139 2022-006
    Significant Deficiency
  • 624140 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program $1.48M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.07M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $655,563
20.509 Formula Grants for Rural Areas and Tribal Transit Program $154,149
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $134,180
95.001 High Intensity Drug Trafficking Areas Program $117,391
97.044 Assistance to Firefighters Grant $111,345