Finding Text
2024-001 Department of Housing and Urban Development Public Housing Capital Fund (CFP)
2020 Awards – Year ended March 31, 2024
Special Tests and Provisions – Wage Rate Requirements
Criteria: Wage Rate Requirements - the entity must verify that the contractor or subcontractor under the contract or subcontract submits the required certified payrolls, to the contracting entity, for each week that work is performed on contracts that are in excess of $2,000.
Condition: Based upon our inspection of the Authority’s files there were two contracts in excess of $2,000 that the Authority had contractors working on during the fiscal year and they did not have any certified payroll submitted from either contractor.
Context: Based on our review we noted that the Authority was not properly monitoring the contractor’s wage rate requirements and compliance with the requirements.
Known Questioned Costs: There were no known questioned costs.
Cause: The Authority did not request the certified payroll from either contractor during the time that they were performing work for the Authority or before payment to the contractor.
Effect: The Authority did not comply with the Wage Rate Requirements as set out in the Compliance Supplement with regards to requesting certified payroll on a timely manner.
Auditors’ Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the requirements.