Finding Text
Criteria or specific requirement: Uniform Guidance § 200.430(g) Standards for Documentation of Personal Expenses: Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: 2 out of the 26 payroll transaction sampled did not have support for an employees pay rate. Questioned costs: $403. Context: 2 out of the 26 payroll transaction sampled did not have support for an employees pay rate. Cause: Policies and procedures were not in place to ensure all pay rate change letters were retained. Effect: The failure to retain pay rate change letters may lead to unsupported personnel costs being charged to federal awards, potentially resulting in questioned costs, compliance findings, repayment of federal funds. Repeat finding: No. Recommendation: We recommend that the Organization implement policies and procedures to ensure all pay rate change letters or forms are retained in personnel file. Views of responsible officials: There is no disagreement with the audit finding.