Finding Text
2024-006 - Failure to Maintain Standards for Documentation of Personnel Expenses Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Programs. Environmental and Scientific Partnerships and Programs; U.S. Department of State; ALN Number 19.017; Award Number SAQMIP23CA0021 Criteria. Per 2 CFR 200.430 (g), charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be incorporated into the official records of the recipient. Condition. During our testing of Allowable Costs, for all 12 disbursements tested we noted that the hourly rate charged under the grant was higher than the actual hourly rate noted in personnel files. Cause. This condition appears to have been caused by a lack of knowledge of applicable federal compliance requirements causing the grant to be incorrectly charged. Effect. As a result of this condition, the Organization did not fully comply with the Uniform Guidance by not charging the proper hourly rate to the grant. Questioned Costs. No costs are required to be questioned as a result of this finding, in as much as the actual and projected error was de minimis. Recommendation. We recommend that the Organization use actual rates per approved compensation records when charging costs to the grants. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.