Finding 496312 (2023-005)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-10
Audit: 319202
Organization: City of Ingleside, Texas (TX)
Auditor: Abip PC

AI Summary

  • Core Issue: The City failed to include necessary wage rate compliance provisions in CDBG construction contracts over $2,000.
  • Impacted Requirements: Contractors must submit certified payrolls and comply with DOL prevailing wage rates, which were not documented.
  • Recommended Follow-Up: The City should update grant management policies to ensure wage rate requirements are included and monitored in all relevant contracts.

Finding Text

Finding 2023-III-005 – Federal Special Tests and Provisions – CDBG Wage Rate Requirements Type of Finding – Significant Deficiency Criteria: All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (DOL). Condition/Cause: The City was unable to provide documentation that a provision for compliance with DOL Wage Rate Requirements was included in the CDBG construction contract. This includes a requirement for the contractor or subcontractor to submit to the nonfederal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls). The City was unable to provide documentation that certified payrolls were submitted as required. Recommendation: We recommend that the City reviews their grant management and procurement policies and procedures to ensure that Federal Wage Rate requirements are included in all construction contracts in excess of $2,000 financed by federal assistance. We also recommend that the City adopts policies and procedures to ensure that contractors and subcontractors comply with wage rate requirements. Response: City staff will review their grant management and procurement policies and procedures to ensure that Federal Wage Rate requirements are included in all eligible construction contracts and procedures to monitor that contractors and subcontractors comply with wage rate requirements.

Corrective Action Plan

Finding 2023-111-005-Federal Special Tests and Provisions -CBG Wage Rate Requirements Program Name/Assistance Listing Title: CDBG Assistance Listing Number: 14.228 Contact Person: Caron S. Vela, Director of Finance Anticipated Completion Date: March 31, 2025 Planned Corrective Action: Finance staff will update grant management policies and procedures to ensure that Federal Wage Rate requirements are included in all eligible construction contracts and procedures to monitor that contractors and subcontractors comply with wage rate requirements.

Categories

Special Tests & Provisions Procurement, Suspension & Debarment Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 496306 2023-001
    Material Weakness
  • 496307 2023-001
    Significant Deficiency
  • 496308 2023-002
    Significant Deficiency
  • 496309 2023-002
    Significant Deficiency
  • 496310 2023-003
    Significant Deficiency
  • 496311 2023-004
    Significant Deficiency
  • 496313 2023-006
    Significant Deficiency
  • 496314 2023-007
    Significant Deficiency
  • 1072748 2023-001
    Material Weakness
  • 1072749 2023-001
    Significant Deficiency
  • 1072750 2023-002
    Significant Deficiency
  • 1072751 2023-002
    Significant Deficiency
  • 1072752 2023-003
    Significant Deficiency
  • 1072753 2023-004
    Significant Deficiency
  • 1072754 2023-005
    Significant Deficiency
  • 1072755 2023-006
    Significant Deficiency
  • 1072756 2023-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $176,676
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $80,820
16.607 Bulletproof Vest Partnership Program $42,368
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3,364