Finding Text
Allowable Costs Federal Agency: U.S. Department of Transportation Federal Program: Formula Grants for Rural Areas Assistance Listing Number: 20.509 Award Period: 1/1/2025 – 12/31/2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Per Uniform Guidance 200.214 Allowable Costs, the Organization is subject to allowable cost principles, which restrict expenditures within certain guidelines within federal assistance programs or activities. Condition: We noted a pay rate was entered incorrectly in the payroll system resulting in overpayment of payroll. Questioned Costs: $104 Context: For a sample of 40 payroll disbursements tested, we noted a pay rate was entered incorrectly for two employees. Cause: There was a keying error when pay rates were entered into the payroll system Effect: An employee was overpaid for six months until the next pay rate increase went into effect. Repeat Finding: No Recommendation: We recommend the Organization revise its procedures to include approval over payroll change report at least on a semi-annual basis. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding.