Finding Text
Federal agency: Department of Transportation
Federal program title: Airport Improvement Program
Assistance Listing Number: 20.106
Federal Award Identification Number and Year: 3-12-0004-024-2022
Award Period: 09/13/2022-09/13/2026
Type of Finding:
• Significant Deficiency in Internal Control Over Compliance
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires compliance with special tests and provisions. The City should have internal controls designed to ensure compliance with those provisions, including reviewing and monitoring functions outsourced to consultants.
Condition: The City does not have adequate internal controls designed to review the consultant’s monitoring of Davis-Bacon requirements.
Questioned costs: None.
Context: In a sample of 8 certified payrolls, we noted review was performed by the consultant; however, no one at the city reviewed the consultant’s work.
Cause: Turnover in City staff and lack of knowledge and training of those managing grants.
Effect: If the prevailing wage rate is not paid to contracted laborers, it could result in the City being required to return funds to the grantor.
Repeat finding: No.
Recommendation: We recommend the City designate a responsible and qualified grant manager and establish internal controls for matching requirement.
Views of responsible officials: There is no disagreement with the audit finding.