Finding Text
2024-003 Controls over Payroll (Material Weakness in Internal Controls over Compliance and Material Noncompliance)
Title: Research and Development Cluster
Funding Agency, Federal Award, Agreement Number, Award Year, Assistance Listing Number:
National Science Foundation, 2122108, 2024,47.049
National Science Foundation, 1953487, 2024,47.076
United States Department of Education, P031C160248, 2024, 84.031C
United States Department of Health and Human Services, 1R16GM146669-01 & Q02067J, 2024, 93.859
Title: Southwest Forest Health and Wildfire Prevention
Funding Agency: United States Department of Agriculture
Federal Award Agreement Number:21-DG-11030000-020, 22-DG-11030000-013, 23-DG-11030000-014
Award Year:2024
Assistance Listing Number:10.694
Title: Foster Care-Title IV-E
Funding Agency: United States Department of Health and Human Services
Federal Award Agreement Number:N/A
Award Year:2024
Assistance Listing Number:93.658
Pass-Through Agency:CYFD
Pass-Through Identification Number:23-690-500-25581
Condition: In testing 25 payroll items from each program listed above, CRI noted exceptions as
described in the following table. No exceptions were noted in the items tested for the Foster Care
program.
(See table in report pg 120)
Questioned Costs: Known and likely questioned costs of $4,547 and $506,209 are associated with the R&D Cluster related to discrepancies in time and effort documentation. No questioned costs were noted in the Southwest Forest Health and Wildfire Prevention Program or the Foster Care program.
Criteria: Per Title 2 US Code of Federal Regulations Part 200.303a, the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Per 2 CFR section 200.403 – Factors affecting allowability of costs – Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: paragraph (a) Be necessary and reasonable for the performance of the Federal
award and be allocable thereto under these principles; paragraph (g) Be adequately documented.
Per 2 CFR section 200.430 – Compensation – personal services, paragraph (i) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed.
Cause: The University does not have sufficient controls in place to ensure the accuracy of the amounts paid to employees nor include appropriate approvals documented to be allowable to be charged to the federal grant. The University has deficiencies recording and processing payroll as described in finding 2024-001.
Effect: The University may unintentionally charge expenses to the program that do not qualify and in turn lead to questioned costs and/or repayment of funds to the Grantor agency.