Finding 1136804 (2024-002)

Repeat Finding: No Questioned Costs: None Funding Agency: Department of Education AL Number: 84.351A Award Year: 10/1/2023 – 9/30/2024 Condition: The payroll distribution records did not reasonably reflect the total activity of employees. Criteria: The Organization should follow the Uniform Guidance requirement 2 CFR 200.430(i), which requires the Organization to charge the federal awards for salaries and wages must be based on records that accurately reflect the work performed, budget estimates alone do not qualify as support for charges to Federal awards. Cause: The Organization utilized budget estimates alone to calculate the salaries and wages for charges to Federal awards. This is the first year the Organization has a federal program. Effect: The Organization was not in compliance with Uniform Guidance requirements, resulting in a significant deficiency in internal control over compliance. Recommendations: We recommend that the Organization update the estimates procedures to align with what is required by the Uniform Guidance. View of Responsible Officials: Management agrees with the finding and has committed to implementing a corrective action plan.