Finding 1215950 (2025-004)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-05-28
Audit: 402512
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: The Agency did not keep proper records for salary allocations, charging them based on a flat rate instead of actual work performed.
  • Impacted Requirements: This violates 2 CFR Part 200.403, which requires that charges to Federal awards be necessary, reasonable, and properly documented.
  • Recommended Follow-Up: Implement a system to track and document time spent by staff and ensure approved salary rates are properly recorded.

Finding Text

Criteria: In accordance with 2 CFR Part 200.403 of the Uniform Guidance, charges to Federal awards must be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles. Condition: For the year ended June 30, 2025, the Agency did not maintain individual support for the allocation of allocable salaries. These were charged based on a flat rate. Furthermore, there are instances where an independent approved pay rate was not maintained by the human resources department. Cause: The allocable salaries and wages are not charged based on actual work performed. The approved pay rate was not properly documented by the human resources department. Effect: The Agency is not in compliance with 2 CFR Part 200.403 of the Uniform Guidance. Questioned Costs: None reported. Context: A random sampling of the federal expenditures. Repeat Finding: Yes Recommendation: We recommend that the Agency establish a system to determine and document the time spent by allocable staff and appropriately allocate the staff’s personnel expenses to the program. We also recommend that the Agency ensure the staff’s approved salary is properly documented. View of Responsible Officials: Refer to management’s corrective action plan.

Corrective Action Plan

Contact Persons Responsible: Primary – Anthonia Ibe, CFO In Absence (Alternative): – Jesus Infante, CAO Management acknowledges this finding and has developed a corrective action plan to strengthen the underlying control, assign clear ownership, and ensure timely implementation. The Agency is developing a time-tracking and documentation system to capture the actual time spent by allocable staff on federal programs, ensuring that charges to federal awards reflect the actual work performed in compliance with 2 CFR Part 200.403. Concurrently, HR is implementing a standardized pay rate approval and documentation process to ensure all approved salaries are formally recorded and retained by the human resources department. As an interim measure, manual time attestation will be in place by August 31, 2026, while the longer-term system is finalized. The CFO and CAO will work jointly to implement and monitor corrective actions in cross-functional areas, including timekeeping, payroll documentation, record retention, lease tracking, IT access controls, vendor onboarding, procurement documentation, and personnel training. This shared structure is intended to ensure that policy revisions are supported by clear workflows, staff training, documentation standards, and periodic compliance review. By October 31, 2026, the Agency will complete communication and training related to payroll approval controls.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1215951 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.79M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $221,190