Core Issue: The Center failed to support pay rates for 9 out of 40 payroll transactions tested under the Shuttered Venue Operators Grant.
Impacted Requirements: Federal procurement policy mandates that salary and hourly rates must be backed by proper contracts.
Recommended Follow-Up: Management should keep approved pay rate forms in each employee file and document any changes, ensuring proper payment compliance.
Finding Text
Program Information: AL #59.075 Shuttered Venue Operators Grant, U.S. Small Business Administration. Criteria: The federal procurement policy requires salary and hourly rates be properly supported by contracts. Condition: We noted that for 14 out of 40 payroll transactions tested for the Shuttered Venue Operators Grant the Center could not properly support pay rates. This included a total of 9 employees that did not have proper pay rate support. Questioned Costs: Not required to be reported. Cause and Effect: The Center is not retaining approve pay rate forms in all employee files. Management was not able to support the pay rates for 9 employees.Recommendation: We recommend that management retain approved pay rate forms in each employee file. Changes made to rates should also be documented in employee files and approved by the appropriate level of management. This will ensure that employees are being paid properly. View of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.