Finding Text
Finding 2024-003 – Allowable Costs & Activities (Significant Deficiency and Noncompliance)
Information on the Federal Program: U.S. Department of Education, Assistance listing # 84.031
Higher Education Institutional Aid and U.S. Department of Education, Trio Cluster
Criteria: 2 CFR Part 200 Subpart E establishes cost principles to apply in determining costs under
federal awards. Non-federal entities are also required to establish controls over the disbursement
process to ensure compliance with allowable cost requirements.
Condition: We selected a sample of six payroll disbursements for Title III and eleven payroll
disbursements for the Trio programs. Of the six payroll disbursements for Title III, four exceptions
were noted related to approved pay rate documentation. In one instance the position was not in the
grant budget and in three instances, the approved pay rate did not agree to the actual paycheck
amount. Of the eleven payroll disbursements for the Trio Cluster, thirty-two employees were included. Of
these thirty-two, twenty-one exceptions were noted for lack of proper support. Nineteen exceptions
were noted in which the actual pay rate did not agree to the budgeted pay rate; two employees’ job
descriptions did not fall under an allowable position in the grant budget; one journal entry
reclassified payroll costs but the support for pay rate and time charged were not provided; and one
employee received additional pay over the approved letter of appointment, and there was no
support for the percent charged to the program.
Cause: Payroll costs charged to the grants were not properly documented.
Effect: The College did not comply with all allowable cost and activity requirements.
The College did not comply with the exceptions noted for allowable cost and activity requirements.
Questioned Costs: Title III $4,119 and Trio Cluster $25,655.
Recommendation: We recommend the College strengthen its policies and procedures surrounding
payroll grant disbursements to ensure expenses are properly approved and allowable under the
specific grant budget.
Views of Responsible Officials: See Management’s View and Corrective Action Plan included at
the end of the report.