Finding Text
Finding Number: 2022-002 - Represents a significant deficiency in internal control over compliance with Maine Mathematics and Science Alliance?s major federal program. Repeat Finding: No Type of Finding: Significant Deficiency Description: Internal Control over Payroll Condition: The internal controls over compliance for allowable activities and allowable costs are substantially the same for AL #47.076 and #47.070. During our audit, we noted several instances in which payroll expenditures were incorrectly allocated to the programs. The allocations were not based on time and effort records. Criteria: 2 CFR 200.430(i) states that ?Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;?. Cause: During fiscal year 2022, there was turnover in the personnel handling payroll. The database that was used from July 1, 2021 through October 15, 2021 to allocate payroll expenditures to the appropriate programs was not properly calculating based on the approved time and effort records. Effect: Without ensuring the payroll allocation is supported by time and effort records, it is possible that grants could be overcharged, resulting in misstated financial statements and unallowable costs. Context: The situation noted in the audit did not result in reportable questioned costs. We noted the exception applied to payroll periods from July 1, 2021 through October 15, 2021. The sample was not intended, and was not, a statistically valid sample. Recommendation: We recommend that the database used in the allocation of payroll to the grants be compared to the time and effort records prior to posting into the general ledger and sending to Bangor Payroll for processing. This should be completed and documented by an appropriate individual. View of responsible officials: Management agrees with the finding and has committed to a corrective action plan.