Finding Text
2023-003 Program: Nationally Significant Freight and Highway Projects
Financial Assistance Listing Number: 20.934
Federal Agency: U.S. Department of Transportation
Pass-through: California Department of Transportation
Award Year: 2019
Grant Award Number: INFRALUL-5459(031)
Compliance Requirements: Special Tests and Provisions – Wage Rate Requirements
Type of Finding: Material Weakness in Internal Control over Compliance
Criteria:
2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. This includes internal controls over maintaining records of the receipt and review of certified payrolls.
Condition:
We identified nine (9) instances in which the City did not retain evidence to document the individual who reviewed the certified payroll for each week in which work was performed by construction contractors.
Cause:
The City’s procedures did not include documenting the review of the certified payroll received.
Effect:
Ineffective controls over this area of compliance could result in noncompliance with the wage rate compliance requirements.
Questioned Costs:
No questioned costs were identified as a result of our procedures.
Context/Sampling:
The population consisted of forty-nine (49) certified payrolls required during the fiscal year. A sample of nine (9) were selected for testwork.
Repeat Finding from the Prior Year(s):
No.
Recommendation:
The City should establish controls to ensure there are procedures in place requiring the documented review of the certified payroll submitted by the construction contractors.
View of Responsible Official and Planned Corrective Actions
See separate corrective action plan.