Finding 1221733 (2025-001)

Finding 2025-001: Allowable costs – Significant deficiency in internal controls over compliance and compliance finding. Crime Victim Assistance ALN 16.575 Criteria: The Uniform Guidance requires that costs be adequately documented. The Organization’s internal control procedures over compliance specify that all employees’ timesheets and hours agree to the payroll register and to the amount allocated to grant activities. Condition: During allowable cost testing for federal grants, for 1 of the 25 payroll transactions tested, the fringe benefits were charged to the grant twice. Cause: An error in reporting the employee’s payroll expenses for the period caused a portion of the fringe benefits to be included twice. Effect: Employee payroll expenses charged to the grant were overstated. Questioned costs: None. Recommendation: Requests for reimbursement should be reviewed in detail to ensure all payroll costs are properly supported by time sheets and that the expenses are allocated correctly. Management’s response: See corrective action plan.