Management’s Response – Corrective Action Plan:
When using federal funds to compensate employees, Child & Family Resources (CFR) acknowledges that the internal controls need to reasonably assure that the charges are accurate, allowable and properly allocated. The records should support the distribut...
Management’s Response – Corrective Action Plan:
When using federal funds to compensate employees, Child & Family Resources (CFR) acknowledges that the internal controls need to reasonably assure that the charges are accurate, allowable and properly allocated. The records should support the distribution of the employee’s salary or wages among the specific activities charged. CFR uses a third party payroll company (Paycom) for payroll and time and attendance reporting. The payroll allocations are tracked based on percentages approved by the funding source or by employee entries on their timesheet reflecting the grant they are working on. For direct service employees that are allocated to various federal grants, CFR will include the following information on the budget narrative that will outline the specific employee, their time allocation and need. The Federal Program will be able to review and approve the amount of time these employees will spend under their specific grant rendering the allocation as an allowable expense. The language to be included within the budget narrative outlining this allocation is as follows:
Labor Costs (Special Considerations):
Compensation to members of the non-profit institution, trustees, directors, associates, officers and immediate family thereof: (Name of employee with breakdown of time to be spent on contract)
Explanation of why this cost is necessary for the (Program’s) Operations:
What is the total cost to the agency?
Is the cost a less-than-arms-length transaction?
Contact Person:
The Grants & Contracts Coordinator (Scott Fauland) will complete the budget narratives for the federal funding agencies and include the above language within them in order to receive approval from the contracting agency.
Completion Date
CFR will submit the Special Considerations request to the current federal contracts awarded for Fiscal Year 2024 by December 2023 for approval. On new federal contracts, this language will be included on the budget narratives submitted from the original submission. This will be implemented for new contracts starting December 1, 2023.