Purpose

To determine the extent of implementation of the two recommendations included in our initial audit report, Monitoring of Prevailing Wage Compliance on Construction Contracts (Report 2015-S-99).

Background

Our initial audit examined whether the Dormitory Authority of the State of New York (Authority) effectively monitored contractors and sub-contractors on its projects to ensure they paid employees at the prevailing wage rate. The audit report concluded that the Authority has generally implemented appropriate controls to meet its specific responsibilities regarding Article 8, Section 220 of the State Labor Law on Public Work. However, although Authority project managers and field representatives performed site visits for construction projects, they did not routinely inspect the sites to ensure that prevailing wage rates were posted, as required. The initial audit also found that the Authority has an agreement (Agreement) with the Department of Labor to fund an Investigator dedicated to the enforcement of the prevailing wage law on Authority projects in the New York City area. The audit report concluded that the Authority could improve its controls by obtaining documentation that detailed the Investigator’s work and helped officials to determine if the services provided, and the results achieved, adequately fulfilled the requirements of the Agreement.

Key Finding

We found that the Authority has made some progress addressing the issues identified in our original audit. Of the two prior audit recommendations, one was implemented and one was partially implemented.

Key Recommendation

Officials are given 30 days after the issuance of the follow-up report to provide information on any actions that are planned to address the unresolved issues discussed in this report.

Other Related Audit/Report of Interest

Dormitory Authority of the State of New York: Monitoring of Prevailing Wage Compliance on Construction Contracts (2015-S-99)