Finding Text
Allowable Costs/Cost Principles 2022-003 GENERAL INFORMATION: Grant Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Assistance Listing #: 21.027 Federal Agency: Department of Treasury CONDITION: We noted during our audit that the Jackson County Commission paid certain eligible full-time employees premium pay of $8,000 each for January 2022 through March 2022. We noted that the Jackson County Commission failed to calculate the maximum allowable amount of premium pay based on the specified period. Further, supporting documentation for the premium payment did not include any potential overtime worked.This resulted in premium payments to 64 employees exceeding the $13 per hour maximum allowance. CRITERIA: The Coronavirus State and Local Fiscal Recovery Funds Final Rule 31 CFR Part 35 II Eligible Uses B Premium Pay states, in part: "? receipients have discretion with respect to the way in which premium pay is awarded to eligible workers, provided that the total premium pay awarded to any eligible worker does not exceed $13 per hour or $25,000 over the period of performance?" QUESTIONED COSTS: We calculated likely questioned costs of $86,016. For the specified period of January 2022 through March 2022 there were 64 working days. Based upon 8 hour work days at $13 per hour, the total maximum allowable premium pay for the period would be $6,656 per employee. The selected employees received $8,000 each for an overpayment of $1,344 per employee. A total of 64 employees qualified for the full time premium payment resulting in a total likely questioned costs of $86,016. CAUSE: The Jackson County Commission did not have a policy in place to accurately calculate premium pay, adequately support any potential overtime worked, and monitor compliance with the $13 per hour limit. EFFECT: Coronavirus State and Local Fiscal Recovery Funds were expended to provide increased pay in excess of the $13 per hour premium pay limit. REPEAT FINDING: No RECOMMENDATION: The Jackson County Commission is directed to review these regulations and comply with the provisions set forth therein. Calculations should be performed to ensure that all premium pay is within the allowable limits of the Premium Pay requirements of the program. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS: Management will review regulations and implement controls to prevent noncompliance to grant agreements.