Finding Text
Criteria: Under the Uniform Guidance §200.430 Compensation - personal services, charges for salaries and wages must be based on records that accurately reflect the work performed. Budget estimates alone do not qualify as support for charges to Federal awards, unless the entity’s system of internal controls includes processes to review after-the-fact interim charges and to make necessary adjustment such that the final amount charged to the Federal award is accurate, allowable, and properly allocated.
Condition: The School Department charged personnel time to the Local Entitlement grant that was not based on actual work performed, but on budgeted amounts.
Cause: Although the personnel time spent on the grant exceeded the amount charged to the Local Entitlement grant, the time was based on budgeted percentages and not actual time worked.
Effect: Actual personnel time charged to the grant was not documented, was based on budgeted amounts, and therefore, unallowable.
Known Questioned Costs: None
Likely Questioned Costs: None
Recommendations: To avoid future non-compliance in this area, the School Department should not charge any personnel to grants if they work on more than one Federal grant or split their time between Federal and non-Federal work, unless actual work time spent on Federal grant activities is tracked.