Finding Text
Finding 2024-002 – Non-compliance with the Davis-Bacon Act (Material Weakness, Material Non- Compliance)
Public Housing Program – Assistance Listing No. 14.850a, Grant Period: Fiscal Year-End June 30, 2024 Criteria
The Davis-Bacon Act applies to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works. Title 29 of the Code of Federal Regulations, Subtitle A, Part 5, Subpart A describes the Davis-Bacon Act and includes a requirement that applicable agencies shall include in their contracts a provision that the contractor or subcontractor comply with those requirements of the Department of Labor regulations (the Davis-Bacon Act). 29 CFR, Subtitle A, Part 5, Subpart A 5.5-A.3 Payrolls and Basic Records includes a requirement for the contractor or subcontractor to submit to the non-federal entity weekly, for each week in which any contract work is performed, a copy of the payroll and a statement of compliance (certified payrolls).
Condition and Perspective
Four applicable Public Housing Program funded contract vendor files were sampled for compliance with Davis Bacon Act requirements. The Authority was unable to provide copies of certified payrolls for two of the four applicable contracts which the applicable contractors were required to submit for each week work was performed during the fiscal year.
Questioned Costs – None noted
Cause
Failure to monitor active contracts to ensure compliance with federal Davis Bacon Act requirements.
Effect
Non-compliance with the Davis-Bacon Act.
Recommendation
We recommend that the Authority attain weekly certified payrolls from contractors as applicable for all federally funded contracts subject to the Davis-Bacon Act.
Finding 2024-002 – Non-compliance with the Davis-Bacon Act (Material Weakness, Material Non- Compliance) - Continued
Management’s Response
The Authority will attain weekly certified payrolls from contractors as applicable for all federally funded contracts subject to the Davis-Bacon Act. The Authority’s Executive Director, Africa Porter, has assumed the responsibility of executing this corrective action as of April 1, 2025.