Finding Text
Criteria: In accordance with 2 CFR 200.430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Budget estimates alone do not qualify as support for charges to Federal awards. Condition: For the year ended December 31, 2024, AEA did not maintain support for salary based on work performed. Salary and wages were charged based on a flat rate for all employees. Cause: The salaries and wages are not charged based on actual work performed. Effect: AEA is not in compliance with 2 CFR 200.430. Questioned Costs: None reported. Context: A random sampling of the federal expenditures. Repeat Finding: This finding was not corrected. See finding item 2023-101 in the prior year findings. Recommendation: We recommend that AEA establish a system to determine and document the time spent and amount charged to their programs. View of Responsible Officials: Refer to management’s corrective action plan.