Finding Text
Finding No: 2024-001 Allowable Costs/Cost Principles
Federal Agency: U.S. Department of Homeland Security
Pass-Through Entities: N/A
Assistance Listing Number: 97.036
Federal Program: COVID-19 – Disaster Grants-Public Assistance (Presidentially Declared Disasters)
Federal Award Year: Disaster 711118, declaration date March 24, 2020
Criteria or Requirement
Section 200.430 compensation - personal services, more specifically (i) standards for documentation of
personnel expenses notes charges to federal awards for salaries and wages must be based on records
that accurately reflect the work performed.
Condition Found
A Kronos ransomware attack did not allow the time tracking to work for the December 2021 pay period. In
order to pay the employees, the System estimated the hours incurred based on an average of the last three
pay cycles. Consistent with other employes impacted from this ransomware attack, the approximate 50
employees in this Federal Emergency Management Agency (FEMA) claim were asked to true-up their time
for actual hours. For this pay period, the System claimed the estimated payroll of approximately $116,600
with FEMA. The System did not adjust the payroll claimed for FEMA reimbursement in subsequent months.
Of the 40 sample items, two were selected from the above pay period and subsequent time sheets noted
actual hours incurred were less than the estimated amount for approximately $300.
Possible Cause
The System’s level of detail of tracking the adjustments was not sufficient to identify the amount that should
have been adjusted with FEMA. The System has support for the estimated calculation.
Questioned Cost
$300
Effect
Failure to properly maintain adequate support for each expenditure may prevent the System from being in
compliance with the requirements set forth by the Uniform Guidance.
Statistical Validity
The sample was not intended to be, and was not, a statistically valid sample.
Repeat Finding in the Prior Year
A similar finding was not reported in prior year audit.
Recommendation
The System should be reminded to maintain documentation of actual time incurred when charging payroll
to a federal award or to identify other allowable costs to claim.
View of Responsible Officials
Management concurs with this finding. Effective December 2021, the Kronos time tracking module was
resolved.