Finding Text
FINDING 2023-002
Lack of adequate documentation to support certain payroll transactions.
FEDERAL PROGRAM
93.778 – Medical Assistance Program
93.958 – Block Grants for Prevention and Treatment of Substance Abuse
FINDING TYPE
Noncompliance of allowable costs and cost principles.
CRITERIA
Allowable costs incurred under federal awards must be in accordance with the requirements
for allowable costs/cost principles contained in 2 CFR Part 200, Subpart E as well as the
terms and conditions of the federal award.
CONDITION AND CONTEXT
RHD was unable to provide sufficient documentation to support select payroll costs for 2 out
of 80 audit selections to determine if cost were allowable or unallowable to each federal
award.CAUSE
RHD maintains documentation to support the amounts included a payroll transaction within
paper personnel files. RHD was unable to provide documentation to support benefit dollars
included in 2 out of 80 payroll selections.
EFFECT OR POTENTIAL EFFECT
The Organization is not in compliance with federal requirements regarding allowable costs
and cost principles.
RECOMMENDATION
We recommend that personnel files be reviewed on an annual basis to ensure that
documentation is retained to support all payroll transactions.