Finding Text
Federal Agency: U.S. Department of Commerce Compliance Requirement: Allowable Costs Federal Program: 11.805 - MBDA Business Center-Coronavirus Recovery/Relief Grant Award: MB21OBD8050183 Condition/Context: For some employees working under the coronavirus grants, timesheets were submitted and approved several months after the grant period ended. As a result, payroll costs charged to the grant were based on budgeted amounts rather than actual hours worked per timely submitted timesheets. Criteria: 2 CFR 200.430(i) states that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Timesheets must be submitted and approved in a timely manner. Cause: CRMSDC's internal controls over payroll charging practices for the federal program were not properly implemented to ensure timesheets were completed and approved promptly. Effect: CRMSDC's actual payroll costs per the late timesheets exceeded the budgeted amount charged to the grant. Questioned Costs: No overcharge costs resulted since CRMSDC charged less than actual supported costs. Recommendation: We recommend CRMSDC implement proper internal controls to ensure timesheets are completed, submitted, reviewed, and approved prior to payroll processing and charging payroll costs to the federal program. Supervisors should be required to review timesheets for appropriateness and accuracy. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plans section