Finding Text
2022 ? 002 Federal Agency: U.S. Department of Homeland Security Federal Program Name: COVID-19 - Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Assistance Listing Number: 97.036 Federal Award Identification Number and Year: FEMA-4496-DR (1/20/2020 and continuing) Pass-Through Agency: Massachusetts Emergency Management Agency Pass-Through Number(s): CT CDA CTFEMA4496HINGH00XXX Award Period: February 2021 ? June 2021 Compliance Requirement: Allowable Costs / Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: The United States Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Such records should support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on a federal award and a non-federal award. Condition: We noted that for a sample of payroll disbursements the total amount charged to the grant was not supported by accurate documentation. Questioned costs: Below the reportable limit Context: Sixty payroll transactions were selected for testing in our statistically valid sample and the following exceptions were noted: ? For 3 of 60 disbursements, the Town requested reimbursement for certain overtime hours for one employee which were supported by records of time worked by a different employee. ? For 1 of 60 disbursements, the Town disbursed reimbursable expenses for hours reported as overtime which were documented as regular time in the supporting records ? For 2 of 60 disbursements, the employee?s base rate of pay used to calculate the reimbursement request was incorrect. Cause: Policies and procedures were not implemented to ensure that costs charged to the program were based on adequate supporting documentation. Effect: Unallowable costs were charged to the program. Repeat Finding: No. Recommendation: We recommend the Town enhance procedures and controls to ensure that payroll costs charged to the grant are adequately documented. Views of responsible officials: Management agrees with the finding. Please refer to the Corrective Action Plan.