Finding Text
Federal Agency: US Department of Agriculture and US Department of Interior Federal Program Name: Abandoned Mine Land Reclamation Program Cooperative Forestry Assistance Program Assistance Listing Number: 15.252, 10.664 Federal Award Identification Number and Year: SF21AR10064-08, 2022 23-DG-11030000-005, 2023 Award Period: 7/1/2021-6/30/2025 5/8/2023-12/31/2026 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Per 2 CFR §200.430 Compensation-Personal Services, charges to Federal awards for salaries and wages must be based on records that comply with the established accounting policies and procedures of the non-Federal entity; be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; and reasonably reflect the total activity for which the employee is compensated by the non_x0002_Federal entity. Condition: During single audit testwork over payroll, the following issues were noted which are detailed by ALN: ALN 15.252 During our single audit testing over payroll, we identified 1 out of 16 employees tested in which the employee wages charged to the grant did not reflect the hours worked on the grant. This error totaled approximately $1,238.60. ALN 10.664: For 1 out of 11 samples tested, the Department incorrectly calculated gross wages, resulting in an overpayment of $98.81 related to overtime hazard pay. Questioned costs: $1,337.41 Context: This was identified as we tested payroll. The sample described above were statistically valid samples. Cause: The Department did not maintain internal controls sufficient to reasonably ensure compliance with applicable Federal laws, regulations, program requirements, and internal policies. During the year, the program requested a reclassification of certain payroll expenditures to the general fund; however, the entry was not processed, resulting in noncompliance. Effect: Noncompliance with applicable regulations and Department policy, possible overcharges to the Federal grants. Recommendation: We recommend that the Department conduct a review of personnel costs charged to the grant to verify that only positions listed in the Administrative Staff Allocation section of the grant budget narrative have been appropriately charged. For any costs that may be questioned, we further recommend that the Department engage with the federal awarding agency to determine the appropriate resolution.