Finding Text
2023-004 – Allowable Costs Relating to Time and Effort and Internal Controls
Information on Federal Program(s)
U.S. Department of State
Name of Program: Program to End Modern Slavery
Assistance Listing Number: 19.019
Grant Award Number: S-SJTIP-18-CA-1014/ S-SJTIP-18-CA-3035/S-SJTIP-20-CA-0026
Grant Award Period: October 1, 2018 through December 31, 2022; October 1, 2021 through September 30, 2024; July 1, 2022 through October 31, 2023
Criteria or Specific
Requirement: In accordance with 2 CFR Section 200.430.8(i), charges to federal awards for salaries and wages must be based on records that reflect the actual work performed. The charges must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, and must be incorporated into the official records of the non-Federal entity.
Condition: For four salary transactions tested, the Fund could not provide supporting salary allocation schedules for charges made to the Federal awards.
Cause: While the Fund has procedures and controls in place over payroll processing, the Fund was unable to provide the payroll cost allocation spreadsheet for two months during 2023.
Effect or Potential
Effect: Charges to Federal awards for salaries and wages may not reflect accurate time worked.
Questioned Costs: None
Context: We selected 10 salary transactions charged to the federal programs to test controls over allowable costs. For four out of 10 transactions tested, the cost allocation spreadsheet was not available for review.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the Fund consistently enforce its internal controls over payroll processing and ensure that salary allocation schedules are completed and saved.
View of Responsible
Officials: Management agrees with the Federal award finding identified in the audit. The Fund’s response to this finding is described in the accompanying management’s corrective action plan.