Finding 1131609 (2024-001)

Material Weakness
Requirement
A
Questioned Costs
$1
Year
2024
Accepted
2025-04-15
Audit: 353769
Organization: Movement Strategy Center (CA)
Auditor: Armanino LLP

AI Summary

  • Core Issue: Employees did not provide necessary documentation for salary charges to federal awards, violating 2 CFR 200.430.
  • Impacted Requirements: Missing certifications for full-time employees, inadequate timecards, and unsupported compensation costs totaling $50,000.
  • Recommended Follow-Up: Implement a system to ensure all time and effort reports are accurately maintained and reviewed, and gather proper documentation for all compensation costs.

Finding Text

According to 2 CFR 200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Specifically: - Employees who work 100% on a single federal award must have certifications stating that all time was dedicated to the grant, signed by the employee or a supervisor with firsthand knowledge, prepared at least semi-annually. - Employees whose time is split among multiple activities must maintain time and effort reports reflecting actual hours worked in a manner consistent with 2 CFR 200.430(g)(vi). - All compensation costs charged to federal awards must be supported by appropriate documentation that complies with the federal cost principles.During the year ended June 30, 2024, we noted the following: - Employees who charged 100% of their time to the grant lacked required certifications or timecards documenting that their time was spent exclusively on grant-related activities. - In several instances, no timecards were available. - In other cases, available timecards showed no evidence of review or approval. - Employees who allocated only a portion of their time to the grant tracked hours worked on the grant, multiplied by their hourly rate, rather than maintaining records in compliance with 2 CFR 200.430(g)(vi), which requires a system of records that accurately reflects actual work performed. - Certain compensation costs totaling $50,000 were charged to the grant without any supporting documentation. These amounts represent questioned costs.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 555167 2024-001
    Material Weakness
  • 555168 2024-002
    Material Weakness
  • 1131610 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.22M