Finding Text
2 C.F.R § 200.303(a) provides that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.The School District has established approved rates of pay for employees through union negotiated salary schedules. The District used an incorrect rate for 3% of employees tested. Failure to follow the approved rates of pay resulted in underpayments of employee salaries and could resulted in questioned costs if the errors had resulted in an overpayment. The Treasurer should ensure all employee salaries and benefits charged to federal grants are reported at the approved rates, in accordance with the School District’s salary schedules.