Finding Text
Non-compliance with the Davis-Bacon Act (Material Weakness, Material Non- Compliance)
Capital Fund Program – Assistance Listing No. 14.872, Grant Period: Fiscal Year-End March 31, 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 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
The Authority’s Capital Fund Program funded one contract during fiscal year 2024 for which Davis Bacon Act requirements applied. The applicable contract began in May of 2023 and continued through the fiscal year ended March 31, 2024 into fiscal year 2025. The Authority was unable to provide copies of certified payrolls applicable to any weeks after September of 2023.
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.
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, Dr. Earl Hall, has assumed the responsibility of executing this corrective action as of July 1, 2025.