Finding 1157584 (2024-001)

Allowable Costs U.S. Department of Justice National Sexual Assault Kit Initiative – ALN #16.833 Criterion: Per 2 CFR 200.303, a 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 terms and conditions of the Federal Award. Costs must be necessary and reasonable for the performance of the Federal Award and allowable thereto under the principles in 2 CFR part 200, subpart E. In addition, when employees work on projects funded by federal grants, the non-federal entity must certify the time and effort the employee dedicated to the grant funded project. This ensures proper tracking and accountability of grant funds. Condition: Based upon our testwork, we noted that 24 out of our sample of 60 payroll expenditures charged to the program were not adequately supported. The total population was $375,901. The 24 payroll samples tested in which adequate support was not provided totaled $80,654. Cause and Effect: Management lacks a process to ensure that payroll costs are properly allocated to federal programs. Therefore, payroll costs were not properly allocated to the federal program in accordance with 2 CFR part 200, subpart E. Questioned Cost: The questioned costs associated with our payroll sample amounted to $80,654. Recommendation: We recommend that management enhance the design of its control activities to ensure that payroll costs are properly allocated to the appropriate Federal programs. View of Responsible Officials: The Fulton County District Attorney concurs with the finding. In July 2024, the Fulton County District Attorney’s Office (FCDAO) was made aware during their Department of Justice monitoring review of the need to strengthen its time and effort supporting documentation for all employees paid with Federal funds in order to be in compliance with the 2 CFR 200 compliance requirement. Effective August 2024, the processes have been revised, documented, and are now included in the FCDAO standard operating procedure for time and effort management.