Finding 620357 (2022-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-09-11

AI Summary

  • Core Issue: The Authority lacks documentation to ensure compliance with federal wage rate requirements for construction projects funded by federal grants.
  • Impacted Requirements: Compliance with 40 U.S.C. Sections 3141 to 3148, which mandates prevailing wages for federally funded projects over $2,000.
  • Recommended Follow-Up: The Authority should implement a process to document and review wage rate compliance, ensuring that all contractors and subcontractors are monitored effectively.

Finding Text

Assistance Listing Number, Federal Agency, and Program Name - 20.106, Federal Aviation Administration, Airport Improvement Program Federal Award Identification Number and Year - 3-26-0039-068-2022; 2022 Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes Criteria - According to the wage rate requirements under 40 U.S.C. Sections 3141 to 3148, employees who perform work on federally funded construction projects in excess of $2,000 are required to be paid no less than the prevailing wages and fringe benefits specified by the Department of Labor. Organizations that authorize such projects and finance them with federal funds are required to monitor the contractor's or subcontractor's compliance with such wage requirements. Condition - During the audit, it was noted that the Authority does not have documentation to support that a process is in place to ensure compliance with the wage rate requirements, as described by 40 U.S.C. Sections 3141 to 3148, whether the responsibility is performed by the Authority directly or delegated to construction managers with required monitoring by the Authority. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The Authority did not have documentation to support that a control is in place to ensure review of certified payrolls was being performed to monitor wage rate requirements applicable to federally funded construction projects. In our testing population of one contract, we found no instances where certified payrolls were not prepared. Cause and Effect - No control was in place at the Authority for documenting any monitoring of the wage rate requirements. This lack of review could result in noncompliance with grant requirements or questioned costs. Recommendation - We recommend the Authority obtain, maintain, and review documentation demonstrating that wage rates paid by contractors or subcontractors for construction projects were authorized by the Authority and paid for with federal funds and that the Authority is properly monitoring those contracts for compliance. Views of Responsible Officials and Planned Corrective Actions - A form has been created to document the compliance of wage rate requirements, to be completed by the Authority?s engineering manager. Any third party delegates will be required to be the signatory of compliance, with counter signature by the Authority.

Categories

Subrecipient Monitoring Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 43914 2022-005
    Material Weakness
  • 43915 2022-003
    Material Weakness Repeat
  • 43916 2022-004
    Material Weakness
  • 43917 2022-005
    Material Weakness
  • 43918 2022-005
    Material Weakness
  • 43919 2022-005
    Material Weakness
  • 43920 2022-005
    Material Weakness
  • 43921 2022-005
    Material Weakness
  • 43922 2022-005
    Material Weakness
  • 43923 2022-005
    Material Weakness
  • 43924 2022-005
    Material Weakness
  • 43925 2022-005
    Material Weakness
  • 620356 2022-005
    Material Weakness
  • 620358 2022-004
    Material Weakness
  • 620359 2022-005
    Material Weakness
  • 620360 2022-005
    Material Weakness
  • 620361 2022-005
    Material Weakness
  • 620362 2022-005
    Material Weakness
  • 620363 2022-005
    Material Weakness
  • 620364 2022-005
    Material Weakness
  • 620365 2022-005
    Material Weakness
  • 620366 2022-005
    Material Weakness
  • 620367 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program $1.76M
20.106 Covid-19 - Airport Improvement Program $1.53M