Criteria or Specific Requirement: Federal regulations 2 CFR 200.303 states, the District, as a recipient of Federal funds, must establish and maintain effective internal controls 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. In addition, under 2 CFR 200.430, it states that 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, (2) be incorporated into the official records of the non-Federal entity, (3) reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding I 00% of compensated activities, and ( 4) 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 or a federal award and non-Federal award. Condition: During our review of payroll charged to the grant, we noted one employee who did not have documentation to support the distribution of the employee's time spent on grant activities. Cause: Administrative oversight, turnover of internal staffing. Effect: The District did not have adequate documentation to support the distribution of the employee's wages paid using grant funds. Questioned Costs: $33,494 Repeat Finding: No Recommendation: We recommend that documentation be retained to support the distribution of salaries and wages for all employees paid using grant funds. Views of Responsible Officials: Management's views and corrective action plan is included at the end of this report.
2 CFR ? 3474.1 gives regulatory effect to the Office of Management and Budget Guidance in 2 CFR part 200, adopted by the Department of Education. 2 CFR ? 200.430 states, in part, that costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees is reasonable for the services rendered and conforms to the established written policy of the non-federal entity consistently applied to both Federal and non-Federal activities. In addition, 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; be incorporated into the official records of the non-Federal entity; and reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. District Policy 6116 for Time and Effort Reporting indicates the reports should 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 and 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. The payroll office is responsible for the distribution, collection, and retention of all employee time and effort reports. The salaries for 22/22 employees tested were charged to the Title I Grant Fund without any time and effort documentation maintained to support the amount of time worked on the grant. Therefore, we consider the salaries and related benefits for these employees in the amount of $335,270 to be a questioned cost. Failure to maintain the appropriate time and effort documentation could lead to future questioned costs, reduced future federal funding, and the requirement to repay the Ohio Department of Education. The District should ensure all employees charging salaries and benefits to federal grants maintain the appropriate documentation supporting the time spent on the grant, in accordance with District Policy 6116 ? Time and Effort Reporting. Appropriate supporting documentation could include semi-annual certifications for employees working solely on a single cost objective or timesheets when an employee works on multiple activities.
FINDING 2022-006: CRIME VICTIM ASSISTANCE (16.575) ? ALLOWABLE COSTS AND COST PRINCIPLES ? PAYROLL CHARGES AND COST ALLOCATION FINDING TYPE: Federal Awards ? Material Weakness/Noncompliance CRITERIA: 2 CFR Section 200.430 states charges to Federal awards for wages and salaries must be based off records that support actual work performed. For employees that work on more than one Federal award, records must support the distribution. Time and effort reporting must be supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. The Organization must, also, have an overall cost allocation plan that is in adherence with the Uniform Guidance. CONDITION: The auditor noted, while testing a sample of reimbursement requests for Crime Victim Assistance for compliance and adherence to internal controls, that several reimbursement requests lacked contemporaneous backup for wages charged. It was extremely difficult for the auditor to determine how wages were being distributed between each program in sufficient detail. Amounts appeared to have been charged and based off budgeted and estimated amounts in some cases. These amounts were not promptly reconciled for accuracy until well after reimbursement and close of the grant period. The auditor also noted through discussion and observation that the Organization did not have a well-defined and compliant cost allocation plan. CAUSE: Turnover at the accounting position and insufficient internal controls led to accidental and non-compliant reimbursement requests and missing documentation. Management?s cost allocation plan was not adequate to support charges to federal awards. EFFECT: Safenet, Inc. was not in compliance with payroll documentation compliance requirements. Internal controls were not functioning or designed in a manner that would ensure payroll charges to federal awards were accurate and based off actual time spent on each award. Improper amounts could have been charged to federal awards. Wages could have been requested for reimbursement from periods after grants were closed. A non-compliant cost allocation plan could lead to charges being used for multiple awards and inequitable distribution between awards. QUESTIONED COST: Undetermined RECOMMENDATION: Management should ensure internal controls are designed in a manner that charges wages and salaries to Federal awards based off actual time worked for each grant. They should also ensure supporting documentation is maintained that agrees to the reimbursement request and the underlying accounting records. Management must ensure that a sound cost allocation plan is in place that outlines the methods and procedures that Safenet, Inc. will use to allocate costs to various grants. It will ensure shared (indirect) costs are equitably charged to each of its grants. VIEWS OF RESPONSIBLE OFFICIALS: Management agrees with the finding.
FINDINGS AND QUESTIONED COSTS RELATED TO FEDERAL AWARDS Finding Number: 2022-001 Repeat Finding: No Program Name/Assistance Listing Title: Child Nutrition Cluster Assistance Listing Number: 10.559 Federal Agency: U.S. Department of Agriculture Federal Award Number: 7AZ300AZ3 Pass-Through Agency: Arizona Department of Education Questioned Costs: $19,881 Type of Finding: Significant Deficiency Compliance Requirement: Activities Allowed or Unallowed: Allowable Costs/Cost Principles CRITERIA Management is responsible for establishing and maintaining internal controls over payroll. In addition, management is responsible for maintaining documentation to support all salary and wage payments to employees. Further, 2 CFR Part 200.430(i) requires that salaries and wages must be based on records such as pay agreements. CONDITION The District lacked proper internal controls over payroll. CAUSE The District did not establish adequate controls over the retention of employee pay agreements. EFFECT The District?s did not have documentation to support the rate of pay for three employees. CONTEXT The District was not able to provide a pay agreement to support the rate of pay for three of 50 employees reviewed. The sample was not intended to be, and was not, a statistically valid sample. RECOMMENDATION The District should enhance its internal control procedures over payroll to ensure that all pay agreements related to payroll are retained. VIEWS OF RESPONSIBLE OFFICIALS See Corrective Action Plan.
2022-006 U.S. Department of Health and Human Services Temporary Assistance for Needy Families (TANF) Allowable Costs ? Payroll Time and Effort Material Weakness in Internal Controls over Compliance Criteria: Per Uniform Guidance (2 CFR Section 200.430(i)) as it relates to federal grants: Standards for Documentation of Personnel Expenses (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 (for IHE, this per the IHE's definition of IBS); (iv) Encompass 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) [Reserved](vii) 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: The District did not have proper timing keeping for employees that worked on TANF. Thus, evidence of actual time worked on programs was not accurately reflected in the federal grant requests. Cause: Actual personnel time that worked on federal programs are not reconciled to the amounts charged to the federal programs on a regular basis. Context/Sampling: Time reporting controls were not in effect at the District. All employees funded under TANF in FY22 were selected and one employee?s time and effort was not provided. Questioned Costs: None reported. Effect: The District is at risk for noncompliance with allowable costs requirements. Repeat Finding from prior year: No Recommendation: Certain controls should be put in place to ensure that reconciliation and certification of actual time charged to federal programs are consistent with the grant reimbursement for those employees? time. Such reconciliations can be done quarterly, bi-annually, or annually. View of Responsible Officials: Management agrees with the finding.
2022-002 ? Time and Effort Documentation Federal Agency: Department of Health and Human Services Federal Program: Research and Development Cluster Assistance Listing Number: 93.310 ? Trans-NIH Research Support Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: According to Code of Federal Regulations, 200 CFR 200.430(i), the minimum time and effort documentation must be supported by a system of internal controls which provides reasonable assurance that charges are accurate, allowable and allocable; be incorporated into official records; reasonably reflect total activity for which the employee is compensated; encompass all activities (federal and nonfederal); comply with established accounting policies and practices; and support distribution among specific activities or cost objectives. Condition: We noted the charges for one employee was not supported by the established time and effort documentation. This discrepancy was noted for 1 out of 35 samples tested, which was statistically valid. Questioned Costs: $1,653 (known), $16,540 (likely) Context: The employee?s time and effort accounted for $14,887 of the $816,606 total personnel expenses charged to the program audit the award period. Cause: The employee?s time and effort on the program was not captured within the Blood Bank?s timekeeping system. Effect: The condition identified led to noncompliance with federal time and effort documentation requirement. Repeat Finding: Yes, 2021-001 Recommendation: We recommend the Blood Bank implement procedures to ensure all personnel charges to the program are supported by the minimum time and effort documentation outlined within 200 CFR 200.430. Views of Responsible Officials and Planned Corrective Actions Please refer to the attached Corrective Action Plan.
#2022-001 ? Significant Deficiency ? Allowable Costs T.E.A.C.H. Child Care and Development Block Grant, CFDA #93.575 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states uniform administrative requirements, cost principles, and audit requirements for federal awards. CFR 200.430 states, ?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.? Condition During the course of the audit, it was determined that Management used an allocation methodology to allocate salaries to the federal award based on a historical analysis. Although Management performed a reconciliation of allocation to actual cost, no adjusting entry was performed prior to year-end to adjust the financial records. Cause The cause is human error. Effect The potential effects of not reconciling contemporaneous time and effort reporting to allocated payroll expenses could include an over or understatement of salary expenses allocated to the federal grant. Questioned Costs Approximately $3,337 was overcharged on the $4,645,750 grant award. Perspective Information The finding noted related to three (3) individuals who were overcharged to the grant based on testwork performed for four (4) pay periods. Identification as a repeat finding There was a similar finding in the prior year. Recommendation We recommend a periodic reconciliation and recorded entry to the accounting records relating to payroll allocation to actual time recorded to ensure salary expense allocated to the federal awards is supported by actual time worked. View of Responsible Official The Association will conduct reconciliation of payroll allocation twice each year at the end of the second quarter and at the end of the third quarter to actual time recorded to ensure salary expense allocated to the federal awards is supported by actual time worked. A budget revision based on actuals will be implemented effective the fourth quarter.
2022-001 - Allowable Cost/Cost Principal Federal Program Information: 84.425D Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act Criteria: The following CFR(s) apply to this finding: 2 CFR 200.430(i)(1)(vii). Condition: During audit procedures, it was identified that the District was not completing the semi-annual time certifications/periodic time certifications properly and create one semi-annual time certification/periodic time certifications to cover 12 months. Cause: The District does not have the necessary internal controls over compliance. Effect: Expenses may not be properly allocated to the grant; this could result in unallowable expenses being charged and subsequently improperly reimbursed by federal funds. Identification of Questioned Costs: None identified. Context: All signed time certifications were reviewed in conjunction with a test of 25 employees across two payroll periods. This is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implement internal control processes and procedures to ensure that time and effort records for employees working are proper documented in accordance with the grant requirements. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Orleans Central Supervisory Union.
2022-001 - Allowable Cost/Cost Principal Federal Program Information: 84.425D Education Stabilization Fund Under the Coronavirus Aid, Relief and Economic Security Act Criteria: The following CFR(s) apply to this finding: 2 CFR 200.430(i)(1)(vii). Condition: During audit procedures, it was identified that the District was not completing the semi-annual time certifications/periodic time certifications properly and create one semi-annual time certification/periodic time certifications to cover 12 months. Cause: The District does not have the necessary internal controls over compliance. Effect: Expenses may not be properly allocated to the grant; this could result in unallowable expenses being charged and subsequently improperly reimbursed by federal funds. Identification of Questioned Costs: None identified. Context: All signed time certifications were reviewed in conjunction with a test of 25 employees across two payroll periods. This is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the District implement internal control processes and procedures to ensure that time and effort records for employees working are proper documented in accordance with the grant requirements. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the Orleans Central Supervisory Union.
Federal Agency: Department of Justice Federal Program Name: Crime Victim Services 2022 Assistance Listing Number: 16.575 Pass-Through Agency: Minnesota Office of Justice Programs Pass-Through Numbers: A-CVS-2022-WOMADV-021 Award Period: 10/1/2021 ? 9/30/2023 Type of Finding: ? Material Weakness in Internal Control ? Other Matters Criteria: 2 CFR 200 ?200.430 requires that changes to Federal awards for salaries and wages must be based on records that accurately reflect 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. Condition: The Organization did not have a process to review or approve the time and effort of employees charged to the grant. Context: No documentation of time and effort approval was kept the full fiscal year. Cause: Internal control procedures were not in place to review and approve time and effort for personnel. Effect: When internal controls are not in place over payroll charges, there is increased risk that payroll allocations may be incorrect. Repeat Finding: No. Recommendation: The Organization should implement internal controls to ensure that time and effort is reviewed on a timely basis. View of Responsible Officials: Management is in agreement with this audit finding.
#2022-004 ? Significant Deficiency ? Allowable Costs Community Service Block Grant, CFDA # 93.569 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states uniform administrative requirements, cost principles, and audit requirements for federal awards. CFR 200.430 states, ?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.? Condition During the course of the audit, it was determined certain compensation payments were incorrectly allocated to a funding source which did not allow for that type of compensation. This administrative error was corrected. Cause The cause is the result of human error. Effect The potential effects of not reconciling contemporaneous time and effort reporting to allocated payroll expenses could include an over or understatement of compensation payments allocated to the federal grant. Questioned Costs Questioned costs amount to $27,727. Perspective Information This finding was consistent for the fiscal year. Identification as a repeat finding There was no single audit requirement in the prior year and therefore, this finding is not reported as a repeated finding. Recommendation We recommend maintaining weekly timesheets with CEO approval, itemized by time allocated per grant. The financial statement records should be supported by direct time allocated to the grant as indicated on the approved timesheets. View of Responsible Official CAAP will do its due diligence in appropriately allocating costs should similar costs be incurred.
#2022-004 ? Significant Deficiency ? Allowable Costs Community Service Block Grant, CFDA # 93.569 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states uniform administrative requirements, cost principles, and audit requirements for federal awards. CFR 200.430 states, ?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.? Condition During the course of the audit, it was determined certain compensation payments were incorrectly allocated to a funding source which did not allow for that type of compensation. This administrative error was corrected. Cause The cause is the result of human error. Effect The potential effects of not reconciling contemporaneous time and effort reporting to allocated payroll expenses could include an over or understatement of compensation payments allocated to the federal grant. Questioned Costs Questioned costs amount to $27,727. Perspective Information This finding was consistent for the fiscal year. Identification as a repeat finding There was no single audit requirement in the prior year and therefore, this finding is not reported as a repeated finding. Recommendation We recommend maintaining weekly timesheets with CEO approval, itemized by time allocated per grant. The financial statement records should be supported by direct time allocated to the grant as indicated on the approved timesheets. View of Responsible Official CAAP will do its due diligence in appropriately allocating costs should similar costs be incurred.
(2022-046) Title: Internal control over monitoring of employee classification and compensation needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Human Resources Federal Agency: U.S. Department of Labor U.S. Department of Health and Human Services U.S. Department of Defense Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Immunization Cooperative Agreements (COVID-19) Child Support Enforcement National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 17.225; 93.268; 93.563; 12.401 Federal Award Identification Number: Unemployment Insurance Trust Fund, Maine, UI347192055A23, UI372842255A23, UI359482160A23, UI372272255A23, UI356522155A23, UI348602055A23, UI340622055A23; NH23IP922604; 2001MECSES, 2101MECSES, 2201MECSES; W912JD-19-2-1001, W912JD-19-2-1005, W912JD-20-2-1001, W912JD-20-2-1002, W912JD-20-2-1003, W912JD-20-2-1007, W912JD-20-2-1010, W912JD-21-2-1001, W912JD-21-2-1002, W912JD-21-2-1003, W912JD-21-2-1004, W912JD-21-2-1007, W912JD-21-2-1010, W912JD-21-2-1021, W912JD-21-2-1022, W912JD-21-2-1023, W912JD-21-2-1024, W912JD-21-2-1040, W912JD-22-2-1001, W912JD-22-2-1002, W912JD-22-2-1003, W912JD-22-2-1004, W912JD-22-2-1007, W912JD-22-2-1010, W912JD-22-2-1021, W912JD-22-2-1022, W912JD-22-2-1023, W912JD-22-2-1024, W912JD-22-2-1040, W912JD-22-2-2010 Compliance Area: Allowable costs/cost principles Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.430 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. Costs of compensation are allowable to the extent that personal services are rendered during the period of performance under the Federal award, total compensation is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity, and follows an appointment made in accordance with a non-Federal entity?s laws and/or rules or written policies. Condition: The Bureau of Human Resources (BHR) employs Functional Job Analysis (FJA) reports to summarize each State employee?s position duties and responsibilities, and to assign the position to a classification and salary grade representing reasonable compensation for services rendered by the position. The assigned salary grade provides a basis for the allowability of compensation costs charged to Federal grant awards by documenting the reasonableness of compensation for services rendered by State employees, and that the position appointment was made and maintained in accordance with State statute. BHR maintains the position classification specifications and related compensation plan of State employees. Periodic review of position classifications, including required duties and responsibilities, are completed by individual agency personnel through the following processes: ? Annual performance reviews as required by the Performance Management System and related forms which include detail of position duties and responsibilities ? Hiring justification forms completed by agency heads to attest to the duties and responsibilities of positions being filled ? Review and approval of job vacancy announcements prior to advertisement which reflect the duties and responsibilities of the position?s FJA on file These processes have been established to ensure that documented duties and responsibilities of all State employee positions are accurate and up to date. These processes are the responsibility of individual agencies; however, BHR is responsible for the oversight to ensure that agencies are completing the established processes accurately and timely. BHR does not have policies and procedures that require a documented level of oversight or monitoring of agency-level activities. Context: During fiscal year 2022, $122 million of payroll expenditures were charged to Federal grants. This represents approximately 10 percent of fiscal year 2022 Statewide payroll expenditures, which totaled $1.2 billion. Cause: ? Competing priorities ? Lack of resources ? Lack of adequate policies and procedures Effect: ? State employee job classification and compensation may not accurately reflect current duties and responsibilities of each position. As a result, payroll costs charged to Federal awards may not be supported. ? Without documented evidence that these activities are occurring, BHR cannot ensure that the classification and compensation plan of all State employee positions is maintained and properly supported by documentation that accurately reflects the job duties and responsibilities of each position. Recommendation: We recommend that the Department implement additional policies and procedures to ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. Corrective Action Plan: See F-18 Management?s Response: The Department partially agrees with this finding. In addition to the three bullets noting how BHR conducts reviews of position classifications, BHR also conducts the following: ? management submits a management-initiated FJA when a position's duties are being significantly changed, and that FJA is audited by BHR to determine the correct classification; ? an employee may submit an employee-initiated FJA if they believe they are working out of classification, and the FJA will be audited by BHR for determination of the correct classification; and ? classification specifications are reviewed periodically by BHR to determine accuracy and make any changes (this includes when BHR reviews a classification for recruitment and retention purposes). Contact: Breena D. Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886 Auditor?s Concluding Remarks: The Office of the State Auditor recognizes the additional processes conducted by BHR noted in Management?s Response; however, the existing policies and procedures do not ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. The finding remains as stated. (State Number: 22-0111-01)
(2022-046) Title: Internal control over monitoring of employee classification and compensation needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Human Resources Federal Agency: U.S. Department of Labor U.S. Department of Health and Human Services U.S. Department of Defense Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Immunization Cooperative Agreements (COVID-19) Child Support Enforcement National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 17.225; 93.268; 93.563; 12.401 Federal Award Identification Number: Unemployment Insurance Trust Fund, Maine, UI347192055A23, UI372842255A23, UI359482160A23, UI372272255A23, UI356522155A23, UI348602055A23, UI340622055A23; NH23IP922604; 2001MECSES, 2101MECSES, 2201MECSES; W912JD-19-2-1001, W912JD-19-2-1005, W912JD-20-2-1001, W912JD-20-2-1002, W912JD-20-2-1003, W912JD-20-2-1007, W912JD-20-2-1010, W912JD-21-2-1001, W912JD-21-2-1002, W912JD-21-2-1003, W912JD-21-2-1004, W912JD-21-2-1007, W912JD-21-2-1010, W912JD-21-2-1021, W912JD-21-2-1022, W912JD-21-2-1023, W912JD-21-2-1024, W912JD-21-2-1040, W912JD-22-2-1001, W912JD-22-2-1002, W912JD-22-2-1003, W912JD-22-2-1004, W912JD-22-2-1007, W912JD-22-2-1010, W912JD-22-2-1021, W912JD-22-2-1022, W912JD-22-2-1023, W912JD-22-2-1024, W912JD-22-2-1040, W912JD-22-2-2010 Compliance Area: Allowable costs/cost principles Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.430 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. Costs of compensation are allowable to the extent that personal services are rendered during the period of performance under the Federal award, total compensation is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity, and follows an appointment made in accordance with a non-Federal entity?s laws and/or rules or written policies. Condition: The Bureau of Human Resources (BHR) employs Functional Job Analysis (FJA) reports to summarize each State employee?s position duties and responsibilities, and to assign the position to a classification and salary grade representing reasonable compensation for services rendered by the position. The assigned salary grade provides a basis for the allowability of compensation costs charged to Federal grant awards by documenting the reasonableness of compensation for services rendered by State employees, and that the position appointment was made and maintained in accordance with State statute. BHR maintains the position classification specifications and related compensation plan of State employees. Periodic review of position classifications, including required duties and responsibilities, are completed by individual agency personnel through the following processes: ? Annual performance reviews as required by the Performance Management System and related forms which include detail of position duties and responsibilities ? Hiring justification forms completed by agency heads to attest to the duties and responsibilities of positions being filled ? Review and approval of job vacancy announcements prior to advertisement which reflect the duties and responsibilities of the position?s FJA on file These processes have been established to ensure that documented duties and responsibilities of all State employee positions are accurate and up to date. These processes are the responsibility of individual agencies; however, BHR is responsible for the oversight to ensure that agencies are completing the established processes accurately and timely. BHR does not have policies and procedures that require a documented level of oversight or monitoring of agency-level activities. Context: During fiscal year 2022, $122 million of payroll expenditures were charged to Federal grants. This represents approximately 10 percent of fiscal year 2022 Statewide payroll expenditures, which totaled $1.2 billion. Cause: ? Competing priorities ? Lack of resources ? Lack of adequate policies and procedures Effect: ? State employee job classification and compensation may not accurately reflect current duties and responsibilities of each position. As a result, payroll costs charged to Federal awards may not be supported. ? Without documented evidence that these activities are occurring, BHR cannot ensure that the classification and compensation plan of all State employee positions is maintained and properly supported by documentation that accurately reflects the job duties and responsibilities of each position. Recommendation: We recommend that the Department implement additional policies and procedures to ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. Corrective Action Plan: See F-18 Management?s Response: The Department partially agrees with this finding. In addition to the three bullets noting how BHR conducts reviews of position classifications, BHR also conducts the following: ? management submits a management-initiated FJA when a position's duties are being significantly changed, and that FJA is audited by BHR to determine the correct classification; ? an employee may submit an employee-initiated FJA if they believe they are working out of classification, and the FJA will be audited by BHR for determination of the correct classification; and ? classification specifications are reviewed periodically by BHR to determine accuracy and make any changes (this includes when BHR reviews a classification for recruitment and retention purposes). Contact: Breena D. Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886 Auditor?s Concluding Remarks: The Office of the State Auditor recognizes the additional processes conducted by BHR noted in Management?s Response; however, the existing policies and procedures do not ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. The finding remains as stated. (State Number: 22-0111-01)
(2022-046) Title: Internal control over monitoring of employee classification and compensation needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Human Resources Federal Agency: U.S. Department of Labor U.S. Department of Health and Human Services U.S. Department of Defense Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Immunization Cooperative Agreements (COVID-19) Child Support Enforcement National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 17.225; 93.268; 93.563; 12.401 Federal Award Identification Number: Unemployment Insurance Trust Fund, Maine, UI347192055A23, UI372842255A23, UI359482160A23, UI372272255A23, UI356522155A23, UI348602055A23, UI340622055A23; NH23IP922604; 2001MECSES, 2101MECSES, 2201MECSES; W912JD-19-2-1001, W912JD-19-2-1005, W912JD-20-2-1001, W912JD-20-2-1002, W912JD-20-2-1003, W912JD-20-2-1007, W912JD-20-2-1010, W912JD-21-2-1001, W912JD-21-2-1002, W912JD-21-2-1003, W912JD-21-2-1004, W912JD-21-2-1007, W912JD-21-2-1010, W912JD-21-2-1021, W912JD-21-2-1022, W912JD-21-2-1023, W912JD-21-2-1024, W912JD-21-2-1040, W912JD-22-2-1001, W912JD-22-2-1002, W912JD-22-2-1003, W912JD-22-2-1004, W912JD-22-2-1007, W912JD-22-2-1010, W912JD-22-2-1021, W912JD-22-2-1022, W912JD-22-2-1023, W912JD-22-2-1024, W912JD-22-2-1040, W912JD-22-2-2010 Compliance Area: Allowable costs/cost principles Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.430 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. Costs of compensation are allowable to the extent that personal services are rendered during the period of performance under the Federal award, total compensation is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity, and follows an appointment made in accordance with a non-Federal entity?s laws and/or rules or written policies. Condition: The Bureau of Human Resources (BHR) employs Functional Job Analysis (FJA) reports to summarize each State employee?s position duties and responsibilities, and to assign the position to a classification and salary grade representing reasonable compensation for services rendered by the position. The assigned salary grade provides a basis for the allowability of compensation costs charged to Federal grant awards by documenting the reasonableness of compensation for services rendered by State employees, and that the position appointment was made and maintained in accordance with State statute. BHR maintains the position classification specifications and related compensation plan of State employees. Periodic review of position classifications, including required duties and responsibilities, are completed by individual agency personnel through the following processes: ? Annual performance reviews as required by the Performance Management System and related forms which include detail of position duties and responsibilities ? Hiring justification forms completed by agency heads to attest to the duties and responsibilities of positions being filled ? Review and approval of job vacancy announcements prior to advertisement which reflect the duties and responsibilities of the position?s FJA on file These processes have been established to ensure that documented duties and responsibilities of all State employee positions are accurate and up to date. These processes are the responsibility of individual agencies; however, BHR is responsible for the oversight to ensure that agencies are completing the established processes accurately and timely. BHR does not have policies and procedures that require a documented level of oversight or monitoring of agency-level activities. Context: During fiscal year 2022, $122 million of payroll expenditures were charged to Federal grants. This represents approximately 10 percent of fiscal year 2022 Statewide payroll expenditures, which totaled $1.2 billion. Cause: ? Competing priorities ? Lack of resources ? Lack of adequate policies and procedures Effect: ? State employee job classification and compensation may not accurately reflect current duties and responsibilities of each position. As a result, payroll costs charged to Federal awards may not be supported. ? Without documented evidence that these activities are occurring, BHR cannot ensure that the classification and compensation plan of all State employee positions is maintained and properly supported by documentation that accurately reflects the job duties and responsibilities of each position. Recommendation: We recommend that the Department implement additional policies and procedures to ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. Corrective Action Plan: See F-18 Management?s Response: The Department partially agrees with this finding. In addition to the three bullets noting how BHR conducts reviews of position classifications, BHR also conducts the following: ? management submits a management-initiated FJA when a position's duties are being significantly changed, and that FJA is audited by BHR to determine the correct classification; ? an employee may submit an employee-initiated FJA if they believe they are working out of classification, and the FJA will be audited by BHR for determination of the correct classification; and ? classification specifications are reviewed periodically by BHR to determine accuracy and make any changes (this includes when BHR reviews a classification for recruitment and retention purposes). Contact: Breena D. Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886 Auditor?s Concluding Remarks: The Office of the State Auditor recognizes the additional processes conducted by BHR noted in Management?s Response; however, the existing policies and procedures do not ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. The finding remains as stated. (State Number: 22-0111-01)
(2022-046) Title: Internal control over monitoring of employee classification and compensation needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Human Resources Federal Agency: U.S. Department of Labor U.S. Department of Health and Human Services U.S. Department of Defense Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Immunization Cooperative Agreements (COVID-19) Child Support Enforcement National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 17.225; 93.268; 93.563; 12.401 Federal Award Identification Number: Unemployment Insurance Trust Fund, Maine, UI347192055A23, UI372842255A23, UI359482160A23, UI372272255A23, UI356522155A23, UI348602055A23, UI340622055A23; NH23IP922604; 2001MECSES, 2101MECSES, 2201MECSES; W912JD-19-2-1001, W912JD-19-2-1005, W912JD-20-2-1001, W912JD-20-2-1002, W912JD-20-2-1003, W912JD-20-2-1007, W912JD-20-2-1010, W912JD-21-2-1001, W912JD-21-2-1002, W912JD-21-2-1003, W912JD-21-2-1004, W912JD-21-2-1007, W912JD-21-2-1010, W912JD-21-2-1021, W912JD-21-2-1022, W912JD-21-2-1023, W912JD-21-2-1024, W912JD-21-2-1040, W912JD-22-2-1001, W912JD-22-2-1002, W912JD-22-2-1003, W912JD-22-2-1004, W912JD-22-2-1007, W912JD-22-2-1010, W912JD-22-2-1021, W912JD-22-2-1022, W912JD-22-2-1023, W912JD-22-2-1024, W912JD-22-2-1040, W912JD-22-2-2010 Compliance Area: Allowable costs/cost principles Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.430 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. Costs of compensation are allowable to the extent that personal services are rendered during the period of performance under the Federal award, total compensation is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity, and follows an appointment made in accordance with a non-Federal entity?s laws and/or rules or written policies. Condition: The Bureau of Human Resources (BHR) employs Functional Job Analysis (FJA) reports to summarize each State employee?s position duties and responsibilities, and to assign the position to a classification and salary grade representing reasonable compensation for services rendered by the position. The assigned salary grade provides a basis for the allowability of compensation costs charged to Federal grant awards by documenting the reasonableness of compensation for services rendered by State employees, and that the position appointment was made and maintained in accordance with State statute. BHR maintains the position classification specifications and related compensation plan of State employees. Periodic review of position classifications, including required duties and responsibilities, are completed by individual agency personnel through the following processes: ? Annual performance reviews as required by the Performance Management System and related forms which include detail of position duties and responsibilities ? Hiring justification forms completed by agency heads to attest to the duties and responsibilities of positions being filled ? Review and approval of job vacancy announcements prior to advertisement which reflect the duties and responsibilities of the position?s FJA on file These processes have been established to ensure that documented duties and responsibilities of all State employee positions are accurate and up to date. These processes are the responsibility of individual agencies; however, BHR is responsible for the oversight to ensure that agencies are completing the established processes accurately and timely. BHR does not have policies and procedures that require a documented level of oversight or monitoring of agency-level activities. Context: During fiscal year 2022, $122 million of payroll expenditures were charged to Federal grants. This represents approximately 10 percent of fiscal year 2022 Statewide payroll expenditures, which totaled $1.2 billion. Cause: ? Competing priorities ? Lack of resources ? Lack of adequate policies and procedures Effect: ? State employee job classification and compensation may not accurately reflect current duties and responsibilities of each position. As a result, payroll costs charged to Federal awards may not be supported. ? Without documented evidence that these activities are occurring, BHR cannot ensure that the classification and compensation plan of all State employee positions is maintained and properly supported by documentation that accurately reflects the job duties and responsibilities of each position. Recommendation: We recommend that the Department implement additional policies and procedures to ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. Corrective Action Plan: See F-18 Management?s Response: The Department partially agrees with this finding. In addition to the three bullets noting how BHR conducts reviews of position classifications, BHR also conducts the following: ? management submits a management-initiated FJA when a position's duties are being significantly changed, and that FJA is audited by BHR to determine the correct classification; ? an employee may submit an employee-initiated FJA if they believe they are working out of classification, and the FJA will be audited by BHR for determination of the correct classification; and ? classification specifications are reviewed periodically by BHR to determine accuracy and make any changes (this includes when BHR reviews a classification for recruitment and retention purposes). Contact: Breena D. Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886 Auditor?s Concluding Remarks: The Office of the State Auditor recognizes the additional processes conducted by BHR noted in Management?s Response; however, the existing policies and procedures do not ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. The finding remains as stated. (State Number: 22-0111-01)
(2022-046) Title: Internal control over monitoring of employee classification and compensation needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Human Resources Federal Agency: U.S. Department of Labor U.S. Department of Health and Human Services U.S. Department of Defense Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Immunization Cooperative Agreements (COVID-19) Child Support Enforcement National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 17.225; 93.268; 93.563; 12.401 Federal Award Identification Number: Unemployment Insurance Trust Fund, Maine, UI347192055A23, UI372842255A23, UI359482160A23, UI372272255A23, UI356522155A23, UI348602055A23, UI340622055A23; NH23IP922604; 2001MECSES, 2101MECSES, 2201MECSES; W912JD-19-2-1001, W912JD-19-2-1005, W912JD-20-2-1001, W912JD-20-2-1002, W912JD-20-2-1003, W912JD-20-2-1007, W912JD-20-2-1010, W912JD-21-2-1001, W912JD-21-2-1002, W912JD-21-2-1003, W912JD-21-2-1004, W912JD-21-2-1007, W912JD-21-2-1010, W912JD-21-2-1021, W912JD-21-2-1022, W912JD-21-2-1023, W912JD-21-2-1024, W912JD-21-2-1040, W912JD-22-2-1001, W912JD-22-2-1002, W912JD-22-2-1003, W912JD-22-2-1004, W912JD-22-2-1007, W912JD-22-2-1010, W912JD-22-2-1021, W912JD-22-2-1022, W912JD-22-2-1023, W912JD-22-2-1024, W912JD-22-2-1040, W912JD-22-2-2010 Compliance Area: Allowable costs/cost principles Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.430 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. Costs of compensation are allowable to the extent that personal services are rendered during the period of performance under the Federal award, total compensation is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity, and follows an appointment made in accordance with a non-Federal entity?s laws and/or rules or written policies. Condition: The Bureau of Human Resources (BHR) employs Functional Job Analysis (FJA) reports to summarize each State employee?s position duties and responsibilities, and to assign the position to a classification and salary grade representing reasonable compensation for services rendered by the position. The assigned salary grade provides a basis for the allowability of compensation costs charged to Federal grant awards by documenting the reasonableness of compensation for services rendered by State employees, and that the position appointment was made and maintained in accordance with State statute. BHR maintains the position classification specifications and related compensation plan of State employees. Periodic review of position classifications, including required duties and responsibilities, are completed by individual agency personnel through the following processes: ? Annual performance reviews as required by the Performance Management System and related forms which include detail of position duties and responsibilities ? Hiring justification forms completed by agency heads to attest to the duties and responsibilities of positions being filled ? Review and approval of job vacancy announcements prior to advertisement which reflect the duties and responsibilities of the position?s FJA on file These processes have been established to ensure that documented duties and responsibilities of all State employee positions are accurate and up to date. These processes are the responsibility of individual agencies; however, BHR is responsible for the oversight to ensure that agencies are completing the established processes accurately and timely. BHR does not have policies and procedures that require a documented level of oversight or monitoring of agency-level activities. Context: During fiscal year 2022, $122 million of payroll expenditures were charged to Federal grants. This represents approximately 10 percent of fiscal year 2022 Statewide payroll expenditures, which totaled $1.2 billion. Cause: ? Competing priorities ? Lack of resources ? Lack of adequate policies and procedures Effect: ? State employee job classification and compensation may not accurately reflect current duties and responsibilities of each position. As a result, payroll costs charged to Federal awards may not be supported. ? Without documented evidence that these activities are occurring, BHR cannot ensure that the classification and compensation plan of all State employee positions is maintained and properly supported by documentation that accurately reflects the job duties and responsibilities of each position. Recommendation: We recommend that the Department implement additional policies and procedures to ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. Corrective Action Plan: See F-18 Management?s Response: The Department partially agrees with this finding. In addition to the three bullets noting how BHR conducts reviews of position classifications, BHR also conducts the following: ? management submits a management-initiated FJA when a position's duties are being significantly changed, and that FJA is audited by BHR to determine the correct classification; ? an employee may submit an employee-initiated FJA if they believe they are working out of classification, and the FJA will be audited by BHR for determination of the correct classification; and ? classification specifications are reviewed periodically by BHR to determine accuracy and make any changes (this includes when BHR reviews a classification for recruitment and retention purposes). Contact: Breena D. Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886 Auditor?s Concluding Remarks: The Office of the State Auditor recognizes the additional processes conducted by BHR noted in Management?s Response; however, the existing policies and procedures do not ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. The finding remains as stated. (State Number: 22-0111-01)
(2022-046) Title: Internal control over monitoring of employee classification and compensation needs improvement Prior Year Findings: None State Department: Administrative and Financial Services State Bureau: Human Resources Federal Agency: U.S. Department of Labor U.S. Department of Health and Human Services U.S. Department of Defense Assistance Listing Title: Unemployment Insurance (UI) (COVID-19) Immunization Cooperative Agreements (COVID-19) Child Support Enforcement National Guard Military Operations and Maintenance (O&M) Projects Assistance Listing Number: 17.225; 93.268; 93.563; 12.401 Federal Award Identification Number: Unemployment Insurance Trust Fund, Maine, UI347192055A23, UI372842255A23, UI359482160A23, UI372272255A23, UI356522155A23, UI348602055A23, UI340622055A23; NH23IP922604; 2001MECSES, 2101MECSES, 2201MECSES; W912JD-19-2-1001, W912JD-19-2-1005, W912JD-20-2-1001, W912JD-20-2-1002, W912JD-20-2-1003, W912JD-20-2-1007, W912JD-20-2-1010, W912JD-21-2-1001, W912JD-21-2-1002, W912JD-21-2-1003, W912JD-21-2-1004, W912JD-21-2-1007, W912JD-21-2-1010, W912JD-21-2-1021, W912JD-21-2-1022, W912JD-21-2-1023, W912JD-21-2-1024, W912JD-21-2-1040, W912JD-22-2-1001, W912JD-22-2-1002, W912JD-22-2-1003, W912JD-22-2-1004, W912JD-22-2-1007, W912JD-22-2-1010, W912JD-22-2-1021, W912JD-22-2-1022, W912JD-22-2-1023, W912JD-22-2-1024, W912JD-22-2-1040, W912JD-22-2-2010 Compliance Area: Allowable costs/cost principles Type of Finding: Significant deficiency Questioned Costs: None Criteria: 2 CFR 200.303; 2 CFR 200.430 The Department must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the Department is managing awards in compliance with Federal statutes, regulations, and the terms and conditions of awards. Costs of compensation are allowable to the extent that personal services are rendered during the period of performance under the Federal award, total compensation is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity, and follows an appointment made in accordance with a non-Federal entity?s laws and/or rules or written policies. Condition: The Bureau of Human Resources (BHR) employs Functional Job Analysis (FJA) reports to summarize each State employee?s position duties and responsibilities, and to assign the position to a classification and salary grade representing reasonable compensation for services rendered by the position. The assigned salary grade provides a basis for the allowability of compensation costs charged to Federal grant awards by documenting the reasonableness of compensation for services rendered by State employees, and that the position appointment was made and maintained in accordance with State statute. BHR maintains the position classification specifications and related compensation plan of State employees. Periodic review of position classifications, including required duties and responsibilities, are completed by individual agency personnel through the following processes: ? Annual performance reviews as required by the Performance Management System and related forms which include detail of position duties and responsibilities ? Hiring justification forms completed by agency heads to attest to the duties and responsibilities of positions being filled ? Review and approval of job vacancy announcements prior to advertisement which reflect the duties and responsibilities of the position?s FJA on file These processes have been established to ensure that documented duties and responsibilities of all State employee positions are accurate and up to date. These processes are the responsibility of individual agencies; however, BHR is responsible for the oversight to ensure that agencies are completing the established processes accurately and timely. BHR does not have policies and procedures that require a documented level of oversight or monitoring of agency-level activities. Context: During fiscal year 2022, $122 million of payroll expenditures were charged to Federal grants. This represents approximately 10 percent of fiscal year 2022 Statewide payroll expenditures, which totaled $1.2 billion. Cause: ? Competing priorities ? Lack of resources ? Lack of adequate policies and procedures Effect: ? State employee job classification and compensation may not accurately reflect current duties and responsibilities of each position. As a result, payroll costs charged to Federal awards may not be supported. ? Without documented evidence that these activities are occurring, BHR cannot ensure that the classification and compensation plan of all State employee positions is maintained and properly supported by documentation that accurately reflects the job duties and responsibilities of each position. Recommendation: We recommend that the Department implement additional policies and procedures to ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. Corrective Action Plan: See F-18 Management?s Response: The Department partially agrees with this finding. In addition to the three bullets noting how BHR conducts reviews of position classifications, BHR also conducts the following: ? management submits a management-initiated FJA when a position's duties are being significantly changed, and that FJA is audited by BHR to determine the correct classification; ? an employee may submit an employee-initiated FJA if they believe they are working out of classification, and the FJA will be audited by BHR for determination of the correct classification; and ? classification specifications are reviewed periodically by BHR to determine accuracy and make any changes (this includes when BHR reviews a classification for recruitment and retention purposes). Contact: Breena D. Bissell, Director, Bureau of Human Resources, DAFS, 207-215-0886 Auditor?s Concluding Remarks: The Office of the State Auditor recognizes the additional processes conducted by BHR noted in Management?s Response; however, the existing policies and procedures do not ensure proper oversight and monitoring of agency-level activities related to position duties and responsibilities and maintenance of the State classification and compensation plan. The finding remains as stated. (State Number: 22-0111-01)
FINDING 2022-004 Subject: Title I Grants to Local Educational Agencies - Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies Assistance Listings Number: 84.010 Federal Award Numbers and Years (or Other Identifying Numbers): S010A190014, S010A200014, S010A210014 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Allowable Costs/Cost Principles Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not developed at the School Corporation to ensure compliance with requirements related to the grant agreement and the Allowable Costs/Cost Principles compliance requirement. The School Corporation approved a salary schedule for bus drivers which included additional compensation based on miles driven for bus drivers who transported preschool students. Each pay period, the Director of Transportation calculated a bus driver's daily pay by adding the approved hourly wage rate times hours worked to the per mile rate times miles driven for the preschool route, if applicable. The School Corporation provided approved timesheets for the bus drivers selected for testing; however, the calculation of the daily pay calculation was not provided for audit. The bus drivers' payroll of $113,486 charged to the Title I grants during the audit period were considered questioned costs. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.403 states in part: "Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: . . . (g) Be adequately documented. . . ." 2 CFR 200.430(i) states in part: "Standards for Documentation of Personnel Expenses (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 (for IHE, this per the IHE's definition of IBS); . . . (vii) 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. . . ." Cause Management had not established a system of internal controls that would have ensured compliance with the grant agreement and the Allowable Costs/Cost Principles compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Allowable Costs/Cost Principles compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs Known questioned costs were $113,486 as identified in the Condition and Context. Recommendation We recommended that the School Corporation's management establish a system of internal controls to ensure compliance and comply with the grant agreement and the Allowable Costs/Cost Principles compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
FINDING 2022-004 Subject: Title I Grants to Local Educational Agencies - Allowable Costs/Cost Principles Federal Agency: Department of Education Federal Program: Title I Grants to Local Educational Agencies Assistance Listings Number: 84.010 Federal Award Numbers and Years (or Other Identifying Numbers): S010A190014, S010A200014, S010A210014 Pass-Through Entity: Indiana Department of Education Compliance Requirement: Allowable Costs/Cost Principles Audit Findings: Material Weakness, Modified Opinion Condition and Context An effective internal control system was not developed at the School Corporation to ensure compliance with requirements related to the grant agreement and the Allowable Costs/Cost Principles compliance requirement. The School Corporation approved a salary schedule for bus drivers which included additional compensation based on miles driven for bus drivers who transported preschool students. Each pay period, the Director of Transportation calculated a bus driver's daily pay by adding the approved hourly wage rate times hours worked to the per mile rate times miles driven for the preschool route, if applicable. The School Corporation provided approved timesheets for the bus drivers selected for testing; however, the calculation of the daily pay calculation was not provided for audit. The bus drivers' payroll of $113,486 charged to the Title I grants during the audit period were considered questioned costs. The lack of internal controls and noncompliance were systemic issues throughout the audit period. Criteria 2 CFR 200.303 states in part: "The non-Federal entity must: (a) 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. These internal controls should be in compliance with guidance in 'Standards for Internal Control in the Federal Government' issued by the Comptroller General of the United States or the 'Internal Control Integrated Framework', issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). . . ." 2 CFR 200.403 states in part: "Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: . . . (g) Be adequately documented. . . ." 2 CFR 200.430(i) states in part: "Standards for Documentation of Personnel Expenses (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 (for IHE, this per the IHE's definition of IBS); . . . (vii) 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. . . ." Cause Management had not established a system of internal controls that would have ensured compliance with the grant agreement and the Allowable Costs/Cost Principles compliance requirement. Effect The failure to establish an effective internal control system enabled material noncompliance to go undetected. Noncompliance with the grant agreement and the Allowable Costs/Cost Principles compliance requirement could result in the loss of future federal funds to the School Corporation. Questioned Costs Known questioned costs were $113,486 as identified in the Condition and Context. Recommendation We recommended that the School Corporation's management establish a system of internal controls to ensure compliance and comply with the grant agreement and the Allowable Costs/Cost Principles compliance requirement. Views of Responsible Officials For the views of responsible officials, refer to the Corrective Action Plan that is part of this report.
Criteria: Per federal regulation 2 CFR section 200.430(i)(1)(vii), the School District must maintain time and effort records for employees who work, all or in part, under federal grants. Condition: The semi-annual certification provided by an employee was not complete and was signed prior to the end of the period worked, as listed on the document. Cause: The School District was not aware of the required detail. Effect: The School District was not in compliance with all of the components of the requirements. Recommendation: We recommend that the School District ensure that all required timesheets include the related employee data and clearly identify the time segregated between federal and non-federal funding. Certification statements should be properly signed and dated and accurately reflect the time period worked. Management?s Response: Management agrees with this finding.
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.
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.