Finding 1169837 (2025-002)

Criteria: 2 CFR 200.405 maintains that costs which are allocable to more than one program be allocated based on the proportional benefit or as determined on any reasonable basis. Condition: Cost allocations for salaries and related expenses allocated across program activities were not supported by allocated amounts in time sheets. Cause: Due to the transition of staff and accounting systems throughout the year, the Organization had inconsistent reconciliations of employee payroll to the vouchers submitted for awards. Context: Cost allocations for salaries and related expenses allocated across program activities were not supported by allocated amounts in time sheets. Questioned Costs: None. Effect: Because the reconciliation process in place was not consistently followed to agree employee payroll reports to cost allocations, it is possible that an employee's time may be inappropriately allocated amongst functional activities, including federal award programs. Recommendation: Procedures should be consistently applied requiring the reconciliation of submitted payroll reports to the employees' actual costs allocated and charged to federal and other programs. View of Responsible Officials: The Organization agrees with the finding, see corrective action plan.