Finding Text
Condition and Context: During 2022, the School provided stipends to employees for recruiting and retention. These stipends ranged from $1,800 to $16,700 per employee. The recruiting and retention stipends had no supporting documentation justifying the amount paid. Criteria, Cause and Effect: According to 2 CFR ?200.430, Compensation ? personal services, compensation must be ?reasonable for the services rendered? and be ?supported by the total activity for which the employee is providing services.? The cause is due to a lack of understanding of the required support for personal compensation as required by 2 CFR ?200.430. The effect is insufficient support for employee stipends. Recommendation: We recommend that the School establish a written policy on the stipends for recruiting and retention that is reasonable and comparable to other similar organizations in the area. Management?s Response: The School?s responsible officials? views and planned corrective action are in its corrective action plan at the end of the report.