Finding 960983 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-26
Audit: 297648
Auditor: Marcum LLP

AI Summary

  • Core Issue: The Authority failed to collect certified payrolls for a vendor providing vacancy restoration services, violating the Davis-Bacon Act.
  • Impacted Requirements: Weekly certified payroll submissions are mandatory to ensure compliance with prevailing wage laws.
  • Recommended Follow-Up: The Authority should obtain and review weekly certified payrolls for all relevant contracts to prevent wage violations.

Finding Text

2023-002 – SPECIAL TESTS AND PROVISIONS – WAGE RATE REQUIREMENTS Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development CFDA #: 14.850 – Public and Indian Housing Program CRITERIA The Davis-Bacon Act (DBA) applies to each federal government or District of Columbia contract in excess of $2,000 for the construction, alteration, or repair (including painting and decorating) of public buildings or public works and requires that contractors and subcontractors pay their laborers and mechanics employed under such contracts no less than the locally prevailing wages and fringe benefits for corresponding work on similar projects in the area. The DBA’s prevailing wage provisions apply to “Related Acts,” under which federal agencies assist construction projects through grants, loans, loan guarantees, and insurance. The contractor shall submit weekly for each week in which any contract work is performed… The payrolls submitted shall set out accurately and completely all of the information required to be maintained under 29 CFR 5.5(a)(3)(i), (29 CFR 5.5 (a)(3)) CONDITION The Authority did not obtain copies of the certified payroll related to vacancy / apartment restoration services. CAUSE The Authority was unaware that the DBA applied to this vendor. EFFECT Failure to collect the weekly certified payroll may result in employee’s being paid less than the prevailing wage. QUESTIONED COSTS None CONTEXT Certified payrolls are required to be obtained for each week the contractor performs work. This vendor provided vacancy / apartment restoration services throughout the year. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority obtain copies of the weekly certified payrolls for each contract relating to construction, alteration or repair projects. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Categories

Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 384541 2023-002
    Significant Deficiency
  • 384542 2023-003
    Significant Deficiency Repeat
  • 384543 2023-003
    Significant Deficiency Repeat
  • 384544 2023-004
    Significant Deficiency Repeat
  • 960984 2023-003
    Significant Deficiency Repeat
  • 960985 2023-003
    Significant Deficiency Repeat
  • 960986 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $22.42M
14.850 Public and Indian Housing $5.49M
14.872 Public Housing Capital Fund $2.97M
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $1.45M
14.879 Mainstream Vouchers $967,884
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $40,809