Finding Text
2024-008 Significant Deficiency – Allowable Wages Criteria and Condition: In order to stay in compliance with federal requirements for allowable activities/allowable costs, the Organization must have complete accounting records, follow approved budgets, and file required reporting forms in a timely and accurate manner. The Organization has not complied with this requirement. Context: As outlined in the award #48113, only 33.33% of Executive Director’s wages can be charged to the grant. In 1 of the payroll selections to test for allowable activity and costs, it was noted that 100% of the Executive Director’s compensation for the pay period tested was being charged to the grant. Cause: Management did not have controls in place to monitor grant requirements for allowable payroll expenditures under the federal award. Effect: The overbilling of executive director compensation resulted in known questioned costs of $2,028. Recommendation: Establish a system of controls to review FSR submissions for grant compliance prior to submission. Views of Responsible Officials and Planned Corrective Action: The chief financial officer will compare the FSR to the grant before submission to ensure allowable payroll is submitted.