Finding Text
Finding 2024-006: Activities Allowed or Unallowed / Allowable Costs / Cost Principles (Payroll) (Material Weakness & Material Noncompliance) Federal Program: Coronavirus State and Local Fiscal Recovery Funds ("SLFRF") Assistance Listing Number: 21.027 Criteria: Per Uniform Guidance (§200.430), compensation costs charged to federal awards must be based on records that accurately reflect the work performed, be supported by a system of internal control providing reasonable assurance that charges are accurate, allowable, and properly allocated, reflect actual time worked, not budget estimates, and must include documentation such as timesheets or certifications of time and effort. Condition/Context: For a sample of 60 payroll transactions tested for the SLFRF program, totaling $28,505, Camillus did not maintain approved timesheets or any allocation methodology to support payroll costs charged to the program. Allocations were based solely on budget estimates rather than actual time and effort records, which does not comply with Uniform Guidance requirements. Our sample was not, and was not intended to be, statistically valid. Cause: Camillus has not developed a system of internal control which provides information that personnel charges are accurate, allowable, and properly allocated. Effect or potential effect: Payroll costs charged to the program may not accurately reflect the work performed, increasing the risk of noncompliance with federal requirements. Questioned costs: $28,505 Repeat Finding, if applicable: This was not a repeat finding. Recommendation: Camillus should implement procedures to ensure payroll costs charged to federal programs are supported by actual time-and-effort documentation, such as timesheets or certifications, and that allocations are based on actual activity rather than budget estimates. Views of Responsible Officials: Camillus House acknowledges the finding and concurs that payroll costs charged to the SLFRF program must be supported by documentation reflecting actual time and effort. Management has implemented corrective actions to strengthen internal controls over payroll allocations and ensure compliance with Uniform Guidance.