Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Finding 2022-001: Time and Effort Reporting 84.027, 84.173 - Special Education Cluster Passed Through the New York State Education Department DEPARTMENT OF EDUCATION Condition/Criteria : Under 2 CFR 200.430, Uniform Guidance requires that payroll systems must be based on records that accurately reflect the work performed and are supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated. Although the District does have a process to track time and effort within the grants, the District did not have proper reporting performed during the school year for teachers that were tested under the grant. Their internal controls failed to detect the lack of reporting performed. Context : A sample of 2 out of 11 employees were haphazardly selected for testing. This was not a statistically valid sample. Cause : The District does not currently have records that support time and effort for teachers under the grant. Effect: The District is not in compliance with time and effort reporting. Recommendation: We recommend the District examine the control procedures in place related to this area and ensure they are designed sufficiently for the District to meet the requirement of 2 CFR 200.430 under Uniform Guidance. Management Response: Starting September 2022, any staff member who is either fully or partially compensated from a grant has signed a monthly statement noting the hours worked, percentage of his/her FTE funded, and the grant source. This statement is also signed by his or her supervisor.
2022-002: Activities Allowed or Unallowed and Allowable Costs/Cost Principles: , No Time Studies, Proper Time Tracking, Time Allocation, and Time Reporting (Significant Deficiency) Federal program information: Funding agency: U.S. Department of Human Health and Services Title: HIV Emergency Relief Formula Grant ALN: 93.914 Funding agency: U.S. Department of Housing and Urban Development Title: Housing Opportunities for Persons With AIDS ALN: 14.241 Criteria: According to 2 CFR ?225, Appendix B, charges to federal awards for salaries and wages should be based on payrolls documented in accordance with generally accepted practices within the Organization and approved by a responsible official of the Organization. Further, charges for salaries and wages will be signed by the employee and supervisory official having firsthand knowledge of the work performed by the employee. Additionally, in accordance with 2 CFR 200.430(i)(1), charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: I. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; II. Be incorporated into the official records of the non-Federal entity; III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; IV. Encompass both Federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non- Federal entity?s written policy; V. Comply with the established accounting policies and practices of the non-Federal entity; and VI. Support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: We noted that PRC did not have controls in place to ensure that all payroll expenditures were properly supported per PRC?s policies and procedures. ? HIV Emergency Relief Formula Grant (ALN 93.914) - As per PRC's internal procedure manual, time sheets should be updated by both salaried and hourly employees; however, time cards for 22 samples could not be located. ? Housing Opportunities for Persons With AIDS (ALN 14.241) - For payroll samples selected for testing, we were unable to determine how payroll was tracked and charged for all of the employees who provide direct services related to this program. Cause: PRC did not follow its policies and procedures regarding the retention of payroll supporting documentation. Effect: Payroll related charges to the program are not supported. PRC is not in compliance with 2 CFR 200.430(i)(1) regarding documentation in support of salaries and wages charge to the federal program. Questioned Costs: Questioned costs were not determinable. Repeat finding: No Recommendation: We recommend that PRC implement control procedures to ensure that all payroll costs charged to the federal program are supported by documentation as required by 2 CFR 200.430(i)(1). Further, we recommend PRC to conduct and document semi-annual time studies to ensure that all staff time is allocated properly across all contracts and funding sources.
2022-002: Activities Allowed or Unallowed and Allowable Costs/Cost Principles: , No Time Studies, Proper Time Tracking, Time Allocation, and Time Reporting (Significant Deficiency) Federal program information: Funding agency: U.S. Department of Human Health and Services Title: HIV Emergency Relief Formula Grant ALN: 93.914 Funding agency: U.S. Department of Housing and Urban Development Title: Housing Opportunities for Persons With AIDS ALN: 14.241 Criteria: According to 2 CFR ?225, Appendix B, charges to federal awards for salaries and wages should be based on payrolls documented in accordance with generally accepted practices within the Organization and approved by a responsible official of the Organization. Further, charges for salaries and wages will be signed by the employee and supervisory official having firsthand knowledge of the work performed by the employee. Additionally, in accordance with 2 CFR 200.430(i)(1), charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: I. Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; II. Be incorporated into the official records of the non-Federal entity; III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; IV. Encompass both Federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non- Federal entity?s written policy; V. Comply with the established accounting policies and practices of the non-Federal entity; and VI. Support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non- Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: We noted that PRC did not have controls in place to ensure that all payroll expenditures were properly supported per PRC?s policies and procedures. ? HIV Emergency Relief Formula Grant (ALN 93.914) - As per PRC's internal procedure manual, time sheets should be updated by both salaried and hourly employees; however, time cards for 22 samples could not be located. ? Housing Opportunities for Persons With AIDS (ALN 14.241) - For payroll samples selected for testing, we were unable to determine how payroll was tracked and charged for all of the employees who provide direct services related to this program. Cause: PRC did not follow its policies and procedures regarding the retention of payroll supporting documentation. Effect: Payroll related charges to the program are not supported. PRC is not in compliance with 2 CFR 200.430(i)(1) regarding documentation in support of salaries and wages charge to the federal program. Questioned Costs: Questioned costs were not determinable. Repeat finding: No Recommendation: We recommend that PRC implement control procedures to ensure that all payroll costs charged to the federal program are supported by documentation as required by 2 CFR 200.430(i)(1). Further, we recommend PRC to conduct and document semi-annual time studies to ensure that all staff time is allocated properly across all contracts and funding sources.
Finding 2022-001: Time and Effort Reporting 84.027, 84.173 - Special Education Cluster Passed Through the New York State Education Department DEPARTMENT OF EDUCATION Condition/Criteria : Under 2 CFR 200.430, Uniform Guidance requires that payroll systems must be based on records that accurately reflect the work performed and are supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated. Although the District does have a process to track time and effort within the grants, the District did not have proper reporting performed during the school year for teachers that were tested under the grant. Their internal controls failed to detect the lack of reporting performed. Context : A sample of 2 out of 11 employees were haphazardly selected for testing. This was not a statistically valid sample. Cause : The District does not currently have records that support time and effort for teachers under the grant. Effect: The District is not in compliance with time and effort reporting. Recommendation: We recommend the District examine the control procedures in place related to this area and ensure they are designed sufficiently for the District to meet the requirement of 2 CFR 200.430 under Uniform Guidance. Management Response: Starting September 2022, any staff member who is either fully or partially compensated from a grant has signed a monthly statement noting the hours worked, percentage of his/her FTE funded, and the grant source. This statement is also signed by his or her supervisor.
Finding 2022-001: Time and Effort Reporting 84.027, 84.173 - Special Education Cluster Passed Through the New York State Education Department DEPARTMENT OF EDUCATION Condition/Criteria : Under 2 CFR 200.430, Uniform Guidance requires that payroll systems must be based on records that accurately reflect the work performed and are supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated. Although the District does have a process to track time and effort within the grants, the District did not have proper reporting performed during the school year for teachers that were tested under the grant. Their internal controls failed to detect the lack of reporting performed. Context : A sample of 2 out of 11 employees were haphazardly selected for testing. This was not a statistically valid sample. Cause : The District does not currently have records that support time and effort for teachers under the grant. Effect: The District is not in compliance with time and effort reporting. Recommendation: We recommend the District examine the control procedures in place related to this area and ensure they are designed sufficiently for the District to meet the requirement of 2 CFR 200.430 under Uniform Guidance. Management Response: Starting September 2022, any staff member who is either fully or partially compensated from a grant has signed a monthly statement noting the hours worked, percentage of his/her FTE funded, and the grant source. This statement is also signed by his or her supervisor.
FINDING 2022-003 INADEQUATE SUPPORT FOR SALARIES AND WAGES- TIME CERTIFICATIONS NOT MAINTAINED (50000) Federal Agency: U.S. Department of Education Pass through Entity: California Department of Education Program Names: Elementary and Secondary School Emergency Relief I, II, III (ESSER, ESSER II, ESSER III) (Assistance Listing 84.425, D, U). Title I (Assistance Listing 84.010) Criteria: 2 CFR 200.430 requires that an LEA must maintain time and effort distribution records that support the distribution of the employee?s salary or wages among specific activities or cost objectives. 2CFR, section 225, appendix B, Section 8(h) states in part: Support of salaries and wages?These standards regarding time distribution are in addition to the standards for payroll documentation. (1) Charges to Federal awards for salaries and wages, whether treated as direct or indirect costs, will be based on payrolls documented in accordance with generally accepted practice of the governmental unit and approved by a responsible official(s) of the governmental unit. (2) No further documentation is required for salaries and wages of employees who work in a single indirect cost activity. (3) Where employees are expected to work solely on a single Federal award or cost objective, charges for their salaries and wages will be supported by periodic certifications that the employee worked solely on that program for the period covered by the certification. These certifications will be prepared at least semi-annually and will be signed by the employee or supervisory official having first-hand knowledge of the work performed by the employee. CSAM Procedure 905 states, in part: Periodic (Semiannual)Certification Employees who work solely on a single federal award or cost objective need only complete a periodic certification. The periodic certification must: ? Be prepared at least semiannually. ? Be signed by the employee or the supervisory official having firsthand knowledge of the work performed by the employee. ? State the employee worked solely on that single federal program or cost objective during the period covered by the certification. Where multiple employees work on the same cost objective, a blanket certification may be used as the documentation for all employees who worked on the cost objective?. Personnel Activity Report Except as provided in ?Substitute Systems for Time Accounting,? employees who work on multiple activities or cost objectives of which at least one is federal must complete a personnel activity report (PAR) or equivalent documentation. A PAR may be as detailed as a document that identifies the employee?s activity daily by hours, or it may be as simple as a report of the total hours or percentage of hours spent in each categorical program or cost objective. The level of detail can generally be determined by the diversity and variation of the employee?s work activities. The safest approach is to provide more documentation rather than less. Condition: The District provided approved time sheets for only 3 employees out of 20 selected that were paid from ESSER funding. The District provided 9 of 10 time accounting records that included PARS for Title I. Context/Questioned Cost/Effect: The District did not provide time certification records for 17 of the 20 employees selected for review, who were paid with Education Stabilization Funds. As a result, the amount of $736,116.27 is in question. This finding occurred in the 2021-22 fiscal year and is not a repeat finding. The District did not provide time certification records for 1 of 8 employees selected for review, who was paid with Title I funds, as a result, the amount of $ 91,794 is in question. Cause: The District does not have adequate controls in place to ensure that time certification documentation is prepared and maintained to support all employees who are paid with federal funds. Recommendations: We recommend the District comply with Title 2, CFR 200.303, and CSAM Procedure 905 which require that employee time certification forms be maintained for employees who charge time to federal programs. Views of Responsible Officials: Management will ensure that the District does have adequate controls in place and comply with Federal rules and guidelines.
FINDING 2022-003 INADEQUATE SUPPORT FOR SALARIES AND WAGES- TIME CERTIFICATIONS NOT MAINTAINED (50000) Federal Agency: U.S. Department of Education Pass through Entity: California Department of Education Program Names: Elementary and Secondary School Emergency Relief I, II, III (ESSER, ESSER II, ESSER III) (Assistance Listing 84.425, D, U). Title I (Assistance Listing 84.010) Criteria: 2 CFR 200.430 requires that an LEA must maintain time and effort distribution records that support the distribution of the employee?s salary or wages among specific activities or cost objectives. 2CFR, section 225, appendix B, Section 8(h) states in part: Support of salaries and wages?These standards regarding time distribution are in addition to the standards for payroll documentation. (1) Charges to Federal awards for salaries and wages, whether treated as direct or indirect costs, will be based on payrolls documented in accordance with generally accepted practice of the governmental unit and approved by a responsible official(s) of the governmental unit. (2) No further documentation is required for salaries and wages of employees who work in a single indirect cost activity. (3) Where employees are expected to work solely on a single Federal award or cost objective, charges for their salaries and wages will be supported by periodic certifications that the employee worked solely on that program for the period covered by the certification. These certifications will be prepared at least semi-annually and will be signed by the employee or supervisory official having first-hand knowledge of the work performed by the employee. CSAM Procedure 905 states, in part: Periodic (Semiannual)Certification Employees who work solely on a single federal award or cost objective need only complete a periodic certification. The periodic certification must: ? Be prepared at least semiannually. ? Be signed by the employee or the supervisory official having firsthand knowledge of the work performed by the employee. ? State the employee worked solely on that single federal program or cost objective during the period covered by the certification. Where multiple employees work on the same cost objective, a blanket certification may be used as the documentation for all employees who worked on the cost objective?. Personnel Activity Report Except as provided in ?Substitute Systems for Time Accounting,? employees who work on multiple activities or cost objectives of which at least one is federal must complete a personnel activity report (PAR) or equivalent documentation. A PAR may be as detailed as a document that identifies the employee?s activity daily by hours, or it may be as simple as a report of the total hours or percentage of hours spent in each categorical program or cost objective. The level of detail can generally be determined by the diversity and variation of the employee?s work activities. The safest approach is to provide more documentation rather than less. Condition: The District provided approved time sheets for only 3 employees out of 20 selected that were paid from ESSER funding. The District provided 9 of 10 time accounting records that included PARS for Title I. Context/Questioned Cost/Effect: The District did not provide time certification records for 17 of the 20 employees selected for review, who were paid with Education Stabilization Funds. As a result, the amount of $736,116.27 is in question. This finding occurred in the 2021-22 fiscal year and is not a repeat finding. The District did not provide time certification records for 1 of 8 employees selected for review, who was paid with Title I funds, as a result, the amount of $ 91,794 is in question. Cause: The District does not have adequate controls in place to ensure that time certification documentation is prepared and maintained to support all employees who are paid with federal funds. Recommendations: We recommend the District comply with Title 2, CFR 200.303, and CSAM Procedure 905 which require that employee time certification forms be maintained for employees who charge time to federal programs. Views of Responsible Officials: Management will ensure that the District does have adequate controls in place and comply with Federal rules and guidelines.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Assistance Listing Number, Federal Agency, and Program Name - ALN 17.207 Employment Service Cluster and ALN 17.258, 17.259, and 17.278 WIOA Cluster Federal Award Identification Number and Year - Various Pass-through Entity - Michigan Department of Labor and Economic Opportunity - Workforce Development Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - 2 CFR 200.430(a)(3) indicates that personal services are allowable to the extent they are determined and supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition - An internal control was not in place to document that the current rates of pay were approved. During our testing of payroll, we determined that actual pay was charged to the federal grants tested. However, there was no documentation (within personnel files or other means) to support that the rates of pay were approved. Questioned Costs - Not applicable Identification of How Questioned Costs Were Computed - Not applicable Context - Five of the six personnel files that were provided as support for pay rates appeared to contain outdated information. Cause and Effect - DESC did not have a control in place to maintain current payrates in personnel files or to provide alternative documentation to support that pay rates were approved. As a result, we were not able to determine if the rates of pay were approved by management. Recommendation - DESC should maintain up-to-date personnel information to support that the rates of pay for employees are approved. Views of Responsible Officials and Planned Corrective Actions - DESC was unable to locate evidence due to turnover with the HR department. We have hired a new director of human resources (the "Director"), who has implemented an employee filing system that incorporates up-to-date employee information and salary information. This information is noted in offer letters, promotion letters, and salary increase letters. All payroll updates are required in writing to evidence approval of the Director and another executive team member's authorization (president or CFO). This confidential information is stored in the Director?s locked office.
Finding Number: 2022-003 Program: Research and Development Cluster Federal Agency Name: Various Federal Award Year: July 1, 2021 ? June 30, 2022 Federal Assistance Listing Numbers: Various Criteria The Uniform Guidance Section 200.430 states that 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. Further, in accordance with 2 CFR 200.303(a), non-federal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition During our testing of payroll allowability we noted 4 out of 71 payroll transactions tested were paid and charged to the grant incorrectly. Additionally, for 3 out of 71 payroll transactions the amount allocated to the grant was incorrect. The incorrect payments and allocations to grants were due to manual errors when processing payroll and related after the fact allocations to federal grants. We deemed this to be a material weakness in internal controls and noncompiance with the allowable costs compliance requirement. Our sample was not, and was not intended to be statistically valid. This finding is a repeat finding in the immediately prior audit finding 2021-003 Questioned Costs Unallowable payroll costs charged to the grants below FALN 12.300 $ 170 FALN 12.300 170 FALN 47.041 5,744 FALN 47.076 7 Total $ 6,091 Cause Manual calculations or clerical errors of the amount to be paid/and or allocated to the grant were made before being entered into the system. There was no secondary review of the calculation by someone other than the preparer.The University did not have an adequately designed internal control to identify calculation errors in applying payroll amounts to federal awards and as such, the amount of the errors and related non-compliance could have been greater and not detected by the University?s control environment. Effect Payroll amounts charged to federal grants are unsupported by actual time spent on the award and are thus unallowable. Recommendation We recommend that the University implement a more thorough and detailed process and related internal controls to review payroll authorization forms and manual calculations performed before the payroll allocation is recorded to the federal grant.
Finding Number: 2022-003 Program: Research and Development Cluster Federal Agency Name: Various Federal Award Year: July 1, 2021 ? June 30, 2022 Federal Assistance Listing Numbers: Various Criteria The Uniform Guidance Section 200.430 states that 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. Further, in accordance with 2 CFR 200.303(a), non-federal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition During our testing of payroll allowability we noted 4 out of 71 payroll transactions tested were paid and charged to the grant incorrectly. Additionally, for 3 out of 71 payroll transactions the amount allocated to the grant was incorrect. The incorrect payments and allocations to grants were due to manual errors when processing payroll and related after the fact allocations to federal grants. We deemed this to be a material weakness in internal controls and noncompiance with the allowable costs compliance requirement. Our sample was not, and was not intended to be statistically valid. This finding is a repeat finding in the immediately prior audit finding 2021-003 Questioned Costs Unallowable payroll costs charged to the grants below FALN 12.300 $ 170 FALN 12.300 170 FALN 47.041 5,744 FALN 47.076 7 Total $ 6,091 Cause Manual calculations or clerical errors of the amount to be paid/and or allocated to the grant were made before being entered into the system. There was no secondary review of the calculation by someone other than the preparer.The University did not have an adequately designed internal control to identify calculation errors in applying payroll amounts to federal awards and as such, the amount of the errors and related non-compliance could have been greater and not detected by the University?s control environment. Effect Payroll amounts charged to federal grants are unsupported by actual time spent on the award and are thus unallowable. Recommendation We recommend that the University implement a more thorough and detailed process and related internal controls to review payroll authorization forms and manual calculations performed before the payroll allocation is recorded to the federal grant.
Finding Number: 2022-003 Program: Research and Development Cluster Federal Agency Name: Various Federal Award Year: July 1, 2021 ? June 30, 2022 Federal Assistance Listing Numbers: Various Criteria The Uniform Guidance Section 200.430 states that 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. Further, in accordance with 2 CFR 200.303(a), non-federal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition During our testing of payroll allowability we noted 4 out of 71 payroll transactions tested were paid and charged to the grant incorrectly. Additionally, for 3 out of 71 payroll transactions the amount allocated to the grant was incorrect. The incorrect payments and allocations to grants were due to manual errors when processing payroll and related after the fact allocations to federal grants. We deemed this to be a material weakness in internal controls and noncompiance with the allowable costs compliance requirement. Our sample was not, and was not intended to be statistically valid. This finding is a repeat finding in the immediately prior audit finding 2021-003 Questioned Costs Unallowable payroll costs charged to the grants below FALN 12.300 $ 170 FALN 12.300 170 FALN 47.041 5,744 FALN 47.076 7 Total $ 6,091 Cause Manual calculations or clerical errors of the amount to be paid/and or allocated to the grant were made before being entered into the system. There was no secondary review of the calculation by someone other than the preparer.The University did not have an adequately designed internal control to identify calculation errors in applying payroll amounts to federal awards and as such, the amount of the errors and related non-compliance could have been greater and not detected by the University?s control environment. Effect Payroll amounts charged to federal grants are unsupported by actual time spent on the award and are thus unallowable. Recommendation We recommend that the University implement a more thorough and detailed process and related internal controls to review payroll authorization forms and manual calculations performed before the payroll allocation is recorded to the federal grant.
Finding Number: 2022-003 Program: Research and Development Cluster Federal Agency Name: Various Federal Award Year: July 1, 2021 ? June 30, 2022 Federal Assistance Listing Numbers: Various Criteria The Uniform Guidance Section 200.430 states that 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. Further, in accordance with 2 CFR 200.303(a), non-federal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition During our testing of payroll allowability we noted 4 out of 71 payroll transactions tested were paid and charged to the grant incorrectly. Additionally, for 3 out of 71 payroll transactions the amount allocated to the grant was incorrect. The incorrect payments and allocations to grants were due to manual errors when processing payroll and related after the fact allocations to federal grants. We deemed this to be a material weakness in internal controls and noncompiance with the allowable costs compliance requirement. Our sample was not, and was not intended to be statistically valid. This finding is a repeat finding in the immediately prior audit finding 2021-003 Questioned Costs Unallowable payroll costs charged to the grants below FALN 12.300 $ 170 FALN 12.300 170 FALN 47.041 5,744 FALN 47.076 7 Total $ 6,091 Cause Manual calculations or clerical errors of the amount to be paid/and or allocated to the grant were made before being entered into the system. There was no secondary review of the calculation by someone other than the preparer.The University did not have an adequately designed internal control to identify calculation errors in applying payroll amounts to federal awards and as such, the amount of the errors and related non-compliance could have been greater and not detected by the University?s control environment. Effect Payroll amounts charged to federal grants are unsupported by actual time spent on the award and are thus unallowable. Recommendation We recommend that the University implement a more thorough and detailed process and related internal controls to review payroll authorization forms and manual calculations performed before the payroll allocation is recorded to the federal grant.