Finding 554955 (2024-004)

Federal Program Economic Adjustment Assistance Program (AL 11.307) U.S Department of Commerce Special Tests Criteria 29 CFR section 5.5 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). Condition Contracts did not include Davis Bacon wage rate clauses in the contract and one payroll submitted was not properly signed. Questioned Costs None Context A sample of eight weeks during the construction period was selected for testing and all certified payrolls for these eight weeks were requested. The City’s engineer, who monitors the certified payrolls process, did not have signed payrolls for one subcontractor during the eight week period. The engineer was able to provide all the other certified payrolls requested. Cause Management oversight. Effect Employees of the subcontractors might not have received proper wages. Repeat Finding Yes. Prior audit finding 2023-004. Recommendation The City should implement procedures to ensure certified payrolls are received weekly from all contractors or subcontractors for each week in which work was performed. Views of Responsible Officials and Planned Corrective Actions The City agrees with the recommendation and will review its policies and procedures.