Finding Text
Information on the Federal Program: Assistance Living Number 21.027 Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 ?Compensation ? personal services? requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, and that these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, these records must comply with established accounting policies and practices of the non-Federal entity. Condition: Timesheets implemented during the period under audit, but they are not used to support allocation to programs. We noted that payroll transactions lacked a timesheet or other evidence of proper record-keeping to support the program allocations of salaries and related expenses in the general ledger. Context: Fry failed to keep adequate time records to support the amounts charged to Federal program. Our audit work in this area consisted of internal control testwork over a random sample of expenditures. We consider our samples to be representative of the respective populations, and thus, are statistically valid samples. The issue is considered systemic in nature. Cause: Fry?s does not use timesheets for allocations Effect or Potential Effect: Fry could inadvertently mischarge salaries and wages to its various programs. Question Costs: Indeterminable Identification of Repeat Finding: 2021-002 Recommendation: We recommend that Fry uses the implemented timesheets to support program allocations.