Finding Text
Federal Agency: Department of Housing and Urban Development Federal Program: 14.231 Emergency Solutions Grant Program Pass-Through Entity: Maryland Department of Housing and Community Development Identification Number: E-20-DW-24-0001 Requirement: Activities Allowed or Unallowed Type of Finding: Significant deficiency in internal control over major program Criteria: Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one federal award; a federal award and non-federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases or an unallowable activity and a direct or indirect cost activity. Condition: Support for payroll costs claimed under the program was not maintained for all pay periods. Cause: Supporting documentation is not maintained for payroll allocations. Effect: Failure to allocate employee pay in accordance with federal requirements could result in a loss of funding. Context: Out of five pay periods tested, two pay periods excluded an allocation of a program employee’s time. For the remaining three pay periods, the aforementioned program employee was allocated to the program but no documentation was maintained supporting the allocation. Recommendation: The Emergency Solutions program staff should maintain support and rationale for all allocations of payroll costs for employees charged to federal awards. Additionally, employees should earmark their timesheets with the number of hours worked on each program. Views of Responsible Official(s) and Planned Corrective Actions: See corrective action plan.