Finding Text
2022-01 ? Unallowed Payroll Expenditures Criteria: Compliance Requirement B relating to Allowable Costs requires costs to meet general criteria for allowability, including being necessary and reasonable for the performance of the federal award, allocable thereto and adequately documented. Condition: A supervisor authorized excess time for maintenance employees that was not worked. Context: Excessive hours were questioned by board members and upper management. Management reviewed maintenance jobs and estimated hours to complete to determine the magnitude of unallowed expenditures. Cause: The supervisor was motivated to keep maintenance employees, because they were reliable and did good work. She felt justified, because if the funds were not spent, they were lost. The opportunity existed only with collusion between the supervisor and the employees. Effect: Federal funds were used to pay fraudulent payroll expenses. Estimated excess payments/questions costs are between $10,000 and $40,000 over three years, with no more than $20,000 occurring in FY 2022.