Audit 348697

Criteria or Specific Requirement Federal regulation 2 CFR §200.430 states that “charges to Federal awards for salaries and wages must comply with the established accounting policies and practices of the non-Federal entity and budget estimates determined before the services are performed alone do not qualify as support for charges to Federal awards.” Entity policy states that “All employees who are paid in full or in part with federal funds, including employees whose salary is paid with state or local funds but is used to meet a required match or in-kind contribution to a federal program, shall document the amount of time they spend on grant activities (AR 3230)”. Condition In our review of employees charged to the WIOA program we noted that one employee who was split funded between WIOA and Vocational Training had a periodic time certification with fixed percentages, but did not work a fixed schedule throughout the year. Cause The Entity’s internal control process over deposits was not properly designed. Effect The Entity is out of compliance with 2 CFR §200.430. It is reasonably possible that additional employees are mischarged in the payroll system. Context During the 2023-24 fiscal year, the Entity charged 23 employees to the WIOA program in whole or in part for their salaries or extra duty performed. We reviewed time accounting documentation for 6 of the 23 employees charged to the program. We identified findings in 1 out of 6 that were reviewed. Repeat Finding No Recommendation Continue to provide training to all employees funded from federal programs and their supervisors to the requirements for federal time accounting under 2 CFR §200.430. Identify an individual responsible to monitor documentation to ensure it meets requirements. Implement a reconciliation between federal time accounting documentation and payroll records to ensure that appropriate adjustments are made to ensure payroll is charged to the correct programs. Views of Responsible Officials See Corrective Action Plan

Criteria or Specific Requirement Federal regulation 2 CFR §200.430 states that “charges to Federal awards for salaries and wages must comply with the established accounting policies and practices of the non-Federal entity and budget estimates determined before the services are performed alone do not qualify as support for charges to Federal awards.” Entity policy states that “All employees who are paid in full or in part with federal funds, including employees whose salary is paid with state or local funds but is used to meet a required match or in-kind contribution to a federal program, shall document the amount of time they spend on grant activities (AR 3230)”. Condition In our review of employees charged to the WIOA program we noted that one employee who was split funded between WIOA and Vocational Training had a periodic time certification with fixed percentages, but did not work a fixed schedule throughout the year. Cause The Entity’s internal control process over deposits was not properly designed. Effect The Entity is out of compliance with 2 CFR §200.430. It is reasonably possible that additional employees are mischarged in the payroll system. Context During the 2023-24 fiscal year, the Entity charged 23 employees to the WIOA program in whole or in part for their salaries or extra duty performed. We reviewed time accounting documentation for 6 of the 23 employees charged to the program. We identified findings in 1 out of 6 that were reviewed. Repeat Finding No Recommendation Continue to provide training to all employees funded from federal programs and their supervisors to the requirements for federal time accounting under 2 CFR §200.430. Identify an individual responsible to monitor documentation to ensure it meets requirements. Implement a reconciliation between federal time accounting documentation and payroll records to ensure that appropriate adjustments are made to ensure payroll is charged to the correct programs. Views of Responsible Officials See Corrective Action Plan