Audit 308915

Criteria: Pursuant to Uniform Guidance 200-430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition/Context: During the audit of matching, level of effort, and earmarking we noted that there are no timesheets or time certifications maintained to validate the time spent and matched to the federal grant. Effect: There are no controls in place regarding payroll costs allocated to the federal program to meet matching, level of effort, and earmarking compliance requirements. A reasonable possibility exists that noncompliance could occur and not be prevented or detected on a timely basis. Cause: GSFA did not formally document the review and approval of salaries and wages used to meet the program's matching requirements. Questioned cost: None. Recommendation: Management should implement controls to ensure salaries and wages used for matching requirements are certified at the end of each reporting period. Views of responsible officials (unaudited) – Management agrees with the recommendation. Management has subsequently reviewed the salaries and wages used to meet the program's matching requirements for the reporting periods during 2023, and deemed them accurate, allowable, and properly allocated. The subsequent review did not result in any amendments to our filing.

Criteria: Pursuant to Uniform Guidance 200-430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustments must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition/Context: During the audit of matching, level of effort, and earmarking we noted that there are no timesheets or time certifications maintained to validate the time spent and matched to the federal grant. Effect: There are no controls in place regarding payroll costs allocated to the federal program to meet matching, level of effort, and earmarking compliance requirements. A reasonable possibility exists that noncompliance could occur and not be prevented or detected on a timely basis. Cause: GSFA did not formally document the review and approval of salaries and wages used to meet the program's matching requirements. Questioned cost: None. Recommendation: Management should implement controls to ensure salaries and wages used for matching requirements are certified at the end of each reporting period. Views of responsible officials (unaudited) – Management agrees with the recommendation. Management has subsequently reviewed the salaries and wages used to meet the program's matching requirements for the reporting periods during 2023, and deemed them accurate, allowable, and properly allocated. The subsequent review did not result in any amendments to our filing.