Finding 1157497 (2024-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: Payroll costs are based on estimated allocations instead of actual hours worked.
  • Impacted Requirements: Charges to federal awards must reflect actual work performed, as per Uniform Grant Guidance 200.430.
  • Recommended Follow-Up: Implement timesheets that track hours by grant for employee certification and supervisor review.

Finding Text

Finding # 2024-002 Type: Immaterial noncompliance Federal Agency: U.S. Department of Commerce, National Oceanic and Atmospheric Administration Assistance Listing: 11.441 Criteria/Requirement: Per Uniform Grant Guidance 200.430, charges to federal awards for salaries and wages must be based on actual work performed, supported by internal controls, and part of the official records of the organization. Using estimated amounts do not qualify as support for charges to federal awards. Cause: Payroll costs charged to grants are based on estimated allocations not actual hours. Effect: While charges appear allowable to federal programs tested, the potential exists for hours to be inaccurately recorded or charged to programs. Recommendation: All timesheets should include allocated hours by grant before certification by the employee and review by a supervisor. Management Response: Time sheet tracking will be modified to track hours by grant so that time and effort reporting will support amount charged to the grant.

Corrective Action Plan

Finding # 2025-002 Type: Immaterial noncompliance U.S. Department of Commerce, National Oceanic and Atmospheric Administration Assistance Listing #11.441 Finding: Per Uniform Grant Guidance 200.430, charges to federal awards for salaries and wages must be based on actual work performed, supported by internal controls, and part of the official records of the organization. Payroll costs charged to grants are based on estimated allocations not actual hours. All timesheets should include allocated hours by grant before certification by the employee and review by a supervisor. Corrective Action: Time sheet tracking will be modified to track hours by grant so that time and effort reporting will support amount charged to the grant. Anticipated Completion Date December 2025

Categories

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1157490 2024-001
    Material Weakness Repeat
  • 1157491 2024-002
    Material Weakness Repeat
  • 1157492 2024-003
    Material Weakness Repeat
  • 1157493 2024-001
    Material Weakness Repeat
  • 1157494 2024-002
    Material Weakness Repeat
  • 1157495 2024-003
    Material Weakness Repeat
  • 1157496 2024-001
    Material Weakness Repeat
  • 1157498 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
11.441 Regional Fishery Management Councils $17,942