Finding Text
Lack of Documentation to Support Distribution of Wages (Material Weakness)
Federal Agency: Department of Education
Pass-through Agency: New Hampshire Department of Education
Cluster/Program: COVID-19 Education Stabilization Fund
Assistance Listing Number(s): 84.425U
Passed-through Identification: 20220338
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Type of Finding:
Internal Control over Compliance – Material Weakness
Material Noncompliance
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 the federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must (1) 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 100% 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 ward 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 and lack of training of requirements.
Effect: The District did not have adequate documentation to support the distribution of the employee’s wages paid using grant funds.
Questioned Costs: $47,216
Identification as Repeat Finding: This is not a repeat finding.
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.