Finding Text
Finding 2025-002: Significant Deficiency – Error in Payroll Charge Federal Program: Research & Development Cluster Assistance Listing Number: 12.630, Award Number: W911NF-16-2-0092 U.S. Army Research Institute - Basic, Applied and Advanced Research in Science and Engineering Grant Year: 2025 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 supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During testing of payroll charges to the federal awards, we identified an overcharge resulting from an error in the allocation of one employee’s time. The employee’s payroll was charged to the grant for hours that were not supported by time and effort documentation. Context: The Consortium implemented a new payroll and time keeping system during 2025 and was unaware that employees could amend their time after the cost was posted. Effect: The federal award was overcharged by $1,387. Cause: An employee adjusted their allocation of hours subsequent to the posting of the expense to the cost center. The finance department was unaware that this had occurred. Questioned costs: $1,387. Perspective: Statistical sampling was not used, however, samples were determined using AICPA approved guidelines. Repeat finding: This is not a repeat finding. Recommendation: The Consortium should remit payment to the agency in the amount of $1,387 and adjust the settings in the timekeeping module to not allow adjustments after time has been posted. Management’s response (unaudited): See Management’s Corrective Action Plan.