Audit 350763

2024 – 001 – Allowable Costs Federal Agency: U.S. Department of Homeland Security Federal Program Name: Disaster Grants – Public Assistance Assistance Listing Number: 97.036 Federal Award Identification Number and Year: FEMA-4496DR-MA Pass-Through Agency: Massachusetts Emergency Management Agency Pass-Through Number(s): CTFMEMA4496BOPHC02018 Award Period: March 27, 2020 through October 20, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs/cost principles. The Commission should have internal controls designed to ensure compliance with those provisions. Payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurance that charges are accurate; allowable and reasonable. Condition: Some payroll reimbursement requests lacked supporting evidence as to the accuracy of the calculations. Questioned costs: $40,394 Context: For 5 of the 40 payroll transactions tested, we identified the Commission did not have documentation to support the payroll rates utilized in the request for reimbursement. Cause: Based on discussions with management, the awarding agency made adjustments to the workbook prior to uploading it to their portal for Commission approval, but the awarding agency did not provide notice of the change or supporting documentation to the Commission to verify the changes and ensure data accuracy. Effect: The salary charges are subject to disallowance and are considered questioned costs. Recommendation: Management should implement procedures to ensure that changes made by the awarding agency after invoice submission are properly supported and documented prior to approval them in the awarding agency’s portal. Views of responsible officials: There is no disagreement with the audit finding.

2024 – 001 – Allowable Costs Federal Agency: U.S. Department of Homeland Security Federal Program Name: Disaster Grants – Public Assistance Assistance Listing Number: 97.036 Federal Award Identification Number and Year: FEMA-4496DR-MA Pass-Through Agency: Massachusetts Emergency Management Agency Pass-Through Number(s): CTFMEMA4496BOPHC02018 Award Period: March 27, 2020 through October 20, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs/cost principles. The Commission should have internal controls designed to ensure compliance with those provisions. Payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurance that charges are accurate; allowable and reasonable. Condition: Some payroll reimbursement requests lacked supporting evidence as to the accuracy of the calculations. Questioned costs: $40,394 Context: For 5 of the 40 payroll transactions tested, we identified the Commission did not have documentation to support the payroll rates utilized in the request for reimbursement. Cause: Based on discussions with management, the awarding agency made adjustments to the workbook prior to uploading it to their portal for Commission approval, but the awarding agency did not provide notice of the change or supporting documentation to the Commission to verify the changes and ensure data accuracy. Effect: The salary charges are subject to disallowance and are considered questioned costs. Recommendation: Management should implement procedures to ensure that changes made by the awarding agency after invoice submission are properly supported and documented prior to approval them in the awarding agency’s portal. Views of responsible officials: There is no disagreement with the audit finding.