Finding Text
Information on the federal program: United States Airforce, Assistance listing # 12.840 Civil Air Patrol Program Criteria: 2 CFR 200.430(g)(1)(vi) states, "Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on a Federal award and non-Federal award." Condition: A review of all non-Federal travel costs identified six instances in which non-Federal payroll expenses were incorrectly charged to Federal funding. Additionally, one employee hired in the fourth quarter should have received a standard non-Federal payroll allocation but did not, while another employee hired during the same period received this allocation in error. The related unallowable costs totaled $13,800. These issues were communicated to management, who plan to fully reimburse the Federal Government by June 30, 2026. Cause: Time allocation procedures were not consistently followed at the employee level. Effect: Non-Federal activities were charged to Federal funding. Repeat Finding: No Questioned Costs: None reported. Recommendation: Procedures around time allocation should be examined for potential automation based on non-Federal expenditures postings and regular communications of time allocation requirements to employees should be increased. A review of regular payroll allocations should be performed quarterly to ensure they agree to the current duties and responsibilities of employees. This review should be performed and documented by someone other than the preparer. Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan included at the end of the report.