Finding Text
Type of Finding: Significant Deficiency in Internal Control Over Compliance and Compliance Finding Criteria: The Uniform Guidance requires charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. In addition, these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, be incorporated into the official records of the entity, and reasonable reflect the total activity for which the employee is compensated. Condition: During our testing of a sample of payroll transactions charged to the grant we noted one transaction for which the amount charged to the grant did not agree to the time and effort documentation completed by the employee. Context: Of a sample of 40 payroll disbursement charged to the grant we noted one disbursement which did not contain the proper time and effort documentation. This transaction represented $2,173 of the $873,611 in total payroll costs charged to the grant. This was a statistically valid sample. Questioned Costs: None Cause: Updates to the payroll allocations, based on time and effort documentation completed, were not all adequately incorporated into the systems for allocating payroll costs to federal awards. Effect: The District was not in compliance with the Uniform Guidance requirements around cost principles and time and effort documentation. Repeat Finding: No Recommendation: We recommend that the District reviews its procedures and controls over time and effort documentation for wages charged to Federal programs to ensure all documentation accurately reflects the work performed and that the time and effort documentation agrees with how the employee?s wages are allocated to the grant in the finance system. View of Responsible Official: There is no disagreement with the audit finding.