Finding 1215423 (2024-002)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2026-05-22
Audit: 402036
Organization: Fasd United Inc. (DC)
Auditor: BERT SMITH & CO

AI Summary

  • Core Issue: Two employees lacked signed employment agreements, leading to potential miscommunication about roles and pay rates.
  • Impacted Requirements: Federal guidelines (200.403) require that costs charged to grants be supported by proper documentation.
  • Recommended Follow-Up: Ensure all employees have signed employment agreements to mitigate risks and improve compliance.

Finding Text

Condition: In our testing of personnel costs charged to the grant, we identified the following control deficiency related to employment agreements. Signed employment agreements were not provided for two (2) employees. We were provided emails that documented the paid rate. The pay rate for one (1) did not agree to the employment agreement. Criteria: Under 200.403 costs charged to federal awards must be adequately supported with documentation. Cause: The Organization is not consistently following its processes for establishing employee agreements for all its employees. Effect: The use of employment agreements lessens the risk of miscommunications about roles and responsibilities. Context: We reviewed the payroll costs for eight employees whose payroll costs were charged to the grant during the year. Questioned Costs: $0. Recommendation: We recommend the Organization establish signed employment agreements with each employee.

Corrective Action Plan

All employment agreements are currently in compliance and will be regularly reviewed by the Organization for completeness.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1215424 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
12.750 UNIFORMED SERVICES UNIVERSITY MEDICAL RESEARCH PROJECTS $663,131
93.073 BIRTH DEFECTS AND DEVELOPMENTAL DISABILITIES - PREVENTION AND SURVEILLANCE $382,984
93.273 ALCOHOL RESEARCH PROGRAMS $25,205