Finding 1160272 (2022-003)

Material Weakness Repeat Finding
Requirement
BC
Questioned Costs
-
Year
2022
Accepted
2025-10-10

AI Summary

  • Core Issue: The Commission improperly issued premium pay to two employees earning over $83,025, violating CSLFRF regulations.
  • Impacted Requirements: Premium pay eligibility is restricted to workers earning below 150% of the average annual wage for their area.
  • Recommended Follow-Up: Implement procedures to verify employee eligibility before issuing premium pay to ensure compliance with CSLFRF rules.

Finding Text

The U.S. Department of the Treasury adopted the interim final rule published in the Federal Register on May 17, 2021, which contains rules and regulations for the Coronavirus State and Local Fiscal Recovery Funds (“CSLFRF”). The interim final rule provides for the allowance of premium pay to be paid to eligible workers using CSLFRF. An eligible worker is defined as "groups of workers or, to the extent applicable, individual workers, other than those where the eligible worker receiving premium pay is earning (with premium pay included) below 150 percent of their residing state or county's average annual wage for all occupations, as defined by the Bureau of Labor Statistics Occupational Employment and Wage Statistics, whichever is higher on an annual basis; OR the eligible worker receiving premium pay is not exempt from the Fair Labor Standards Act overtime provisions". Furthermore, the State of Alabama's average annual wage ($55,350) for all occupations is higher than Monroe County’s average annual wage ($47,260) on an annual basis. This guidance would require any employees earning over $83,025 (150 percent of $55,350) annually to be ineligible for premium pay. During fiscal year 2022, it was determined two employees earning more than $83,025 received premium pay. The premium pay was $3,497.60 per employee for a total of $6,995.20. Procedures were not in place to ensure the Commission's compliance with CSLFRF regulations. As a result, the Commission failed to comply with CSLFRF rules and issued premium pay to ineligible workers. Recommendation The Commission should ensure premium pay is issued only to eligible workers.

Corrective Action Plan

Response/Views: The County Engineer and Assistant Engineer were declared eligible workers since they performed essential duties during the pandemic, as outlined in the January 2022 Overview of the Final Rule. These employees were discussed in various work sessions; however, they were not properly included in the resolution. Because the County was not a participant in IAC (Investing in Alabama Counties), we did not receive additional guidance. We elected not to pay 8 percent of ARPT funding ($4,027,142.00), which amounts to $322,171.36, to join. As a result, we were unable to obtain specific guidance from either the ACCA office or the Examiners' office on questions related to ARPT. We still have ARPT funds on hand. Corrective Action Planned: If our explanation does not fully satisfy this finding, the County is prepared to reimburse this expense from the General Fund to the ARPT fund account. The ARPT account still maintains a balance, and funds are available to be expended through December 31, 2026. It is important to note that the County received very limited guidance from both the ACCA office and the Examiners of Public Accounts personnel regarding this matter.

Categories

Eligibility Special Tests & Provisions

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $473,022
21.027 Coronavirus State and Local Fiscal Recovery Funds $426,574
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $210,834
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) 94.002 $49,343
97.042 Emergency Management Performance Grants $36,101
16.609 Project Safe Neighborhoods $18,061
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $8,536
15.226 Payments in Lieu of Taxes $7,145