Finding Text
Finding 2024-001 Identification of the federal program: 21.027 – Coronavirus State and Local Fiscal Recovery Funds Noncompliance over allowable activities and allowable costs Criteria: Per the Uniform Guidance (2 CFR 200.430), compensation for personal services must be based on records that accurately reflect the work performed, and costs must be properly allocated to benefitting programs or cost objectives Condition: November’s secondary payroll distribution allocation was spread with incorrect amounts, resulting in costs being charged to the grants that were not allowable. Cause: The Cooperative decreased the sick accrual rate in November, but payroll personnel did not appropriately account for the rate change prior to spreading the amounts. Effect: As a result, costs that were not attributable to the grants were charged to them. Questioned Costs: $1,681 Recommendations: The Cooperative should implement a process to verify that changes affecting payroll allocations are accurately reflected before processing distributions to ensure compliance with allowable cost requirements. Views of responsible officials: Management concurs with the recommendation. A review process will be implemented to ensure that all payroll changes are properly reviewed, verified, and approved prior to final payroll processing.