Audit 409196

Criteria: Under 2 CFR 200.430(i), 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 controls; -Be incorporated into the official records of the non‑Federal entity; -Reasonably reflect total activity for which the employee is compensated; -Support distribution among specific activities or cost objectives. Commonly accepted forms of support include Personal Activity Reports (PARs), timesheets, or an equivalent system documenting actual time worked. Condition: During our testing of payroll charges for employees whose salaries were allocated to the programs, we noted that the entity improperly allocated funds for an employee based on time for a different employee based on the documentation provided supporting the distribution of time to the federal program. Context: Documentation was not properly maintained for support of all employees' salaries and wages tested. Cause: The District has had vacancies in certain positions that are key parts of the District's control processes which led to the District not maintaining proper documentation. Effect or Potential Effect: Without adequate expenditure documentation, there is an increased risk that payroll costs charged to the federal award are inaccurate or unallowable. The lack of supporting records may result in questioned costs related to unsupported salary expenditures. Questioned Costs: None Recommendation: We recommend that the entity: - Implement and enforce policies requiring Personal Activity Reports or an equivalent method that meets 2 CFR 200.430. - Train employees and supervisors responsible for documenting and approving time charged to federal programs. -Maintain documentation that accurately reflects actual time worked on federal awards