Finding Text
Federal Agency US Department of Education
Federal Program Name Higher Education Institutional Aid
Assistance Listing Number 84.031S
Federal Award Identification Number and Year P031S200249 - 2024
Pass-Through Agency (if applicable) N/A
Pass-Through Number(s) (if applicable) N/A
Award Period 7/1/2023-6/30/2024
Compliance Requirement Affected Allowable Costs and Special Tests and Provisions
Type of Finding
Internal Control Significant Deficiency
Document judgment for your assessment Control finding did not result in material known questioned costs-therefore we will document as a SD. Additionally the client provided narrative response documents that the project directors complete, but do not quantify actual hours charged to the grant. based on expenditure of grant funds and activities in narrative responses and performance reports the grant work is being adequately completed, but the quantified hour tracking is not present. As such, based on these factors we will consider this to be a significant deficiency.
Compliance Not Material
Document judgment for your assessment See line 28 for more detailed response
Criteria or specific requirement "Per 2 CFR 200.430(g)(1)(vi), Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records 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 cost activity and a direct cost activity; two or more indirect activities allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.
Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements."
Condition The University did not have proper documentation of Time and Effort reporting.
Questioned costs: N/A
Known 12,965.60
Likely 333907.5
Context During our testing of 40 Payroll transactions, we identified 38 time and effort reports that were not documented properly to track hours worked on federal grant and did not have a documentation of review. Additionally during our testing of 1 key personnel with Level of Effort provisions in the grant award notification, we identified the key personnel did not have documentation to track hours for level of effort required by the Federal agency.
Cause The University did not have proper procedures in place to track time and effort for personnel on federal grants.
Effect The University could potentially expense incorrect amount to federal grants.
Repeat Finding No
Recommendation We recommend the University review policies and procedures to ensure all personnel on federal grants documented time and effort reports as stated in federal regulations.
Views of Responsible Officials Agree