Finding Text
2023-006 – Payroll (Material Weakness in Internal Controls over Compliance/Material
Noncompliance)
Federal Program Information
Federal Award Title and ALN: Research & Development Cluster, 84.031
Federal Awarding Agency: U.S. Department of Education
Federal Award ID Number: P031S210287, P031S210288, P031C200002, P031C210215
Federal Award Year: 2023
Condition: The College’s supporting documentation did not match to the amount of employee’s pay
charged to grant.
Criteria: Per 2 CFR 200.303(a), 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 statutes, regulations, and the terms and
conditions of the Federal award. These internal controls 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 200.430(i)(1) – Compensation – personal services, Charges to Federal awards for
salaries and wages must be based on records that accurately reflect the work performed.
Cause: The College 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.
Effect: Lack of approval and inaccurate documentation for costs charged to grants puts the College
at risk of charging unallowable costs, which in turn could result in required repayment to grantor
agencies.
Questioned Costs: Known questioned costs of $6,812 and likely questioned costs of $83,407.
Auditor recommendation: We recommend the College develop and implement adequate policies
and procedures to ensure charging of expenses for allowability are based off approved amounts.