Finding 369236 (2023-003)

2 CFR section 200.303(a) requires that non-federal entities 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. Condition: The Organization did not consistently document review of payroll reports. Questioned costs: None Context: We tested a sample of 40 payroll disbursements related to this program, noting 3 of the 40 selections did not have a documented review of their payroll report from their third party payroll processor. Cause: Management indicated payroll is reviewed each month, even if it is not initialed. Effect: The effect of this condition increases the possibility that payroll costs submitted for reimbursement may be inaccurate. Repeat Finding: No Recommendation: We recommend the Organization documents review of all payroll reports. Views of Responsible Officials: There is no disagreement with the audit finding.