Finding Text
CDBG 2022-004 WAGES RATE REQUIREMENTS (DAVIS-BACON ACT) CFDA 14.228 Statement of Condition: As part of our audit tests, we selected 4 (100%) construction projects out of 4 projects executed during the fiscal year. The following exception was noted during our examination of the project?s files: NONE (a) In three (3) 75% of project files the certified pay-rolls were not submitted by contractor as required by the federal regulations. Criteria: Non-federal entities shall include in their construction contracts subject to the Davis-Bacon Act a requirement that the contractor or subcontractor comply with the requirements of the Davis-Bacon Act and the DOL regulations (29 CFR part 5, ?Labor Standards Provisions Applicable to Contacts Governing Federally Financed and Assisted Construction?). This 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) (29 CFR sections 5.5 and 5.6) Cause and Effect: This condition arose because the Municipality has not implemented specific internal controls and procedures designed to carry out effective monitoring activities over contractors engaged in projects financed with federal funds, including, but not limited to, the enforcement of compliance with contractual clauses related to Davis-Bacon Act and the training of municipal employees about this law. This condition, if not corrected, may increase the risk of avoidable instances of material non-compliances with the laws and regulations applicable to the Program. Recommendation: The Municipality should establish procedures to ascertain that all documents submitted by the contractor are reviewed and approved on a timely basis to ensure compliance with labor standards.