Finding Text
2025-002. Payroll (Allowable Costs/Cost Principles) United States Department of Education, Passed-through New York State Department of Education: Education Stabilization Funds COVID 19: American Rescue Plan – Elementary and Secondary School Emergency Relief ALN: 84.425U Criteria: Salaries and wages charged to Federal awards must be supported by documentation prescribed by the Uniform Guidance at Subpart I, 2 CFR §200.430, which requires that records accurately reflect the approved and authorized work performed, and support the distribution of compensation among activities. Condition: Subpart I, 2 CFR §200.430 of the Uniform Guidance requires that charges to “Federal awards for salaries and wages must be based on records that accurately reflect the work performed.” The documentation should support the distribution of the employee’s compensation among specific activities if the employees work on more than one Federal award, or a Federal award and non-Federal award. The preparation of payroll verification forms, or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, it was noted that in one instance, the District’s payroll verification form was not reviewed or signed by either the supervisor or employee that was charged to the grant in order to comply with Subpart I, 2 CFR §200.430. Cause: Employee payroll verification forms should accurately reflect time and effort, as described in Subpart I, 2 CFR §200.430, to support salaries and other forms of compensation charged to a federal program. During our audit testing, we noted that one of the District’s payroll verification forms was not signed off by either the supervisor or employee. Effect: Payroll verification forms that are not signed or approved could result in compliance risk due to unsupported salaries and wages not being reviewed and charged to Federal awards correctly. Questioned Costs: The dollar amount was undetermined as the payroll verification form was not signed by the supervisor or employee. Context: For Education Stabilization Funds, based on a sample of nineteen (19) payroll transactions, we noted one (1) payroll transaction did not have a payroll verification form that was signed by either the supervisor or employee. Identification of a Repeat Finding: This is not a repeat finding. Recommendation: The District should prepare, maintain, and have the proper employee signoffs and supervisor approvals for the appropriate documentation to support salaries and wages charged to Federal awards in accordance with the requirements of the Uniform Guidance at Subpart I, 2 CFR §200.430. Views of Responsible Officials of Auditee: The District acknowledges the finding and will thoroughly review and maintain the payroll verification forms to ensure each employee’s salary, or other forms of compensation are properly approved and signed off by both the supervisor and employee to comply with Subpart I, 2 CFR §200.430.