Finding Text
Federal Agency: U.S. Department of Homeland Security
Federal Program Name: COVID-19 - Disaster Grants – Public Assistance (Presidentially Declared Disasters)
Assistance Listing Number: 97.036
Federal Award Identification Number and Year: FEMA-4496-DR (1/20/2020)
Pass-Through Agency: Massachusetts Emergency Management Agency
Pass-Through Number(s): CT CDA CTFEMA4496HINGH
Award Period: January 20, 2020 through May 11, 2023
Compliance Requirement: Allowable Costs / Cost Principles
Type of Finding: Material weakness in internal control over compliance; Material noncompliance
Criteria or specific requirement:
The United States Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Such records should support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on a federal award and a non-federal award.
Condition:
We noted that for a sample of payroll disbursements the total amount charged to the grant was not supported by accurate documentation.
Questioned costs:
Questioned costs total $3,898.
Context:
Sixty payroll transactions were selected for testing in our statistically valid sample and the following exceptions were noted:
• For 2 of 60 disbursements, the Town requested reimbursement for employee hours which were not supported in the documented time records.
• For 1 of 60 disbursements, the Town requested reimbursement for employee hours for which approval documentation was not available in the documented time records.
Cause:
Policies and procedures were not implemented to ensure that costs charged to the program were based on adequate supporting documentation.
Effect:
Unallowable costs were charged to the program.
Repeat Finding:
No.
Recommendation:
We recommend the Town enhance procedures and controls to ensure that payroll costs charged to the grant are adequately documented.
Views of responsible officials:
Management agrees with the finding. Please refer to the Corrective Action Plan.