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 <subject>Income statistics</subject>
 <subject>Data integrity</subject>
 <subject>Minimum wage rates</subject>
 <subject>Labor law</subject>
 <subject>Payroll records</subject>
 <subject>Congressional oversight</subject>
 <subject>Construction contracts</subject>
 <subject>Wage surveys</subject>
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<titleInfo>
 <title>Davis-Bacon Act: Labor Now Verifies Wage Data, but Verification Process Needs Improvement</title>
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<abstract>Pursuant to a legislative requirement, GAO reviewed the: (1) Department
of Labor&apos;s response to the House Appropriations Committee&apos;s directive
that it verify a random sample of employers&apos; wage data submissions and
select a sample of submissions for on-site data verification; and (2)
likely effect of these efforts on the accuracy and timeliness of
Davis-Bacon Act wage determinations.&lt;p/&gt;GAO noted that: (1) in response to a Committee directive and GAO&apos;s
recommendation, Labor has implemented a program to verify wage survey
data submitted on standardized wage data forms by construction
contractors and interested third parties, such as contractor
associations and trade unions; (2) to verify these data, Labor has
developed procedures to select samples of these forms for telephone
verification that differ depending on whether the forms are submitted by
contractors or third parties; (3) in addition, Labor has hired a private
accounting firm to conduct on-site verification reviews; (4) as of
September 30, 1998, the accounting firm had issued final reports for 9
of the 85 geographic area surveys scheduled for audit from April 1997 to
June 1998 and had identified errors in wages reported in about 70
percent of the wage data forms reviewed; (5) in both the telephone and
on-site verification processes, all data--regardless of the entity that
submitted them--are verified only with the contractors; (6) even though
Labor has identified and corrected numerous errors in the wage data
submitted, its verification efforts will have limited impact on the
accuracy of the wage determinations and will increase the time required
to issue them; (7) specifically, errors the accounting firm identified
and corrected in all nine area surveys averaged 76 cents per hour; (8)
but, because Labor was only able to correct the limited number of wage
data forms verified, which contain a small portion of the wage rates
submitted, on average, changes to these wage determinations will be less
than 10 cents per hour, according to Labor officials&apos; estimates; (9) the
extent to which correcting the errors found through verification will
improve the accuracy of wage determinations is limited by: (a) the
Committee directive to use a random sample of wage data forms for
verification, given the characteristics of the wage data with respect to
the universe being sampled; and (b) the procedures Labor uses to
implement this directive; (10) for example, in its procedures, Labor
assumes that data from contractors that refuse access to supporting
documentation are correct and includes the wages in calculating wage
determinations; and (11) while the time needed for verification reduced
timeliness of wage determinations, telephone verification added less
time to the process than did on-site verification--an estimated average
of 2 weeks as compared with an average of 211 days for the 30 area
surveys for which the auditor completed preliminary reports.</abstract>
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<identifier type="preferred citation">GAO/HEHS-99-21</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/HEHS-99-21; Davis-Bacon Act: Labor Now Verifies Wage Data, but Verification Process Needs Improvement;
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<subject>
 <topic>Income statistics</topic>
 <topic>Data integrity</topic>
 <topic>Minimum wage rates</topic>
 <topic>Labor law</topic>
 <topic>Payroll records</topic>
 <topic>Congressional oversight</topic>
 <topic>Construction contracts</topic>
 <topic>Wage surveys</topic>
</subject>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Code</title>
  <partNumber>Title 18 Section 1001</partNumber>
  <partNumber>Title 18 Section 1341</partNumber>
</titleInfo>
 <identifier type="USC citation">18 U.S.C. 1001</identifier>
 <identifier type="USC citation">18 U.S.C. 1341</identifier>
</relatedItem>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States House Report 205 (105th Congress)</title>
</titleInfo>
 <identifier type="congressional report citation">H. Rept. 105-205</identifier>
</relatedItem>
<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States House Report 635 (105th Congress)</title>
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 <identifier type="congressional report citation">H. Rept. 105-635</identifier>
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