Finding Text
Performance-Based Compensation Requirements Criteria – Performance-based compensation charged to federal awards must be paid in accordance with program requirements and applicable policies. Compensation costs must be reasonable, allocable, and supported by documentation that accurately reflects compensation earned, in accordance with 2 CFR 200.430 and the terms and conditions of the federal award. Condition – During the testing of performance-based stipends and related benefits to the state assessment results, it was noted that while eligible current employees were paid correctly, two former employees who earned the compensation prior to separation from employment did not receive their earned performance stipends. Cause – The School Board did not have adequate internal controls to ensure that performance-based incentive compensation earned by employees prior to separation was identified, approved, and paid timely. Effect – Earned performance-based compensation was not paid to two former employees, resulting in noncompliance with program requirements and questioned costs. Questioned Costs - $3,761 Recommendation – The School Board should strengthen program oversight to ensure that all employees whether current or former employees receive the earned performance-based stipend.