According to a recent review by the Washington State Auditor’s Office, the city of Bainbridge Island is not meeting wage requirements set by one of its federal grant programs.

For the most part, the city complied with state laws and its own policies, the report said.

The audit, however, found that Bainbridge did not quite meet the requirements set by a federal grant for highway planning and construction.

The city’s practices “were inadequate to ensure compliance with federal Davis-Bacon Act (prevailing wage) requirements,” the report said.

The Davis-Bacon Act relates to contractors and subcontractors performing federally-funded projects. It requires that laborers employed under the contract be paid no less than the local prevailing wage and fringe benefits that is paid for similar projects in the area.

The state’s independent accountability audit of Bainbridge Island examines operation practices from Jan. 1 to Dec. 31, 2013.

City management is responsible for making sure the city’s departments comply with state law and regulations. City administration must also provide adequate safeguarding of public resources from fraud, loss or abuse.

Compliance depends on the design, implementation and maintenance of relevant internal operations.

It also depends on correct use of public resources.

While the state’s auditing office does not examine every transaction, it covers areas at the highest risk of fraud, loss, abuse or noncompliance.

Those areas were the city’s cost allocation plan, courts, procurement (bidding/prevailing wage), credit cards and conflict of interest.