Finding 37848 (2022-001)

Item 2022-001 Activities Allowed/Allowable Costs & Costs Principles (Significant Deficiency - Payroll) Education Stabilization Fund (ESF) ALN# 84.425U U.S. Department of Education Passed through the State Department of Education, Pass Through Grantor Number COVID-19 199 Criteria ? Grantees should have controls in place to ensure that grant monies are for allowable costs and allowable activities. 2 CFR 200.303 requires the non-Federal entity to ?(a) establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal statutes, regulations, and the terms and conditions of the Federal award.? 2 CFR 200.430 (i) requires that Federal awards for salaries and wages be properly supported. Condition ? There were three noted instances out of 120 tested, where an employee?s time and effort certification was not prepared/approved for payroll charged to the program. Cause ? The errors noted above were caused by human error. The CSFO and payroll clerk review the payroll register for payroll charged to the program to determine time and effort certifications needed. The CSFO?s and payroll clerk?s review did not include the employee in question, as the employee was hired after the CSFO?s and payroll clerk?s review. Effect ? Failure to comply could result in disallowed costs. Questioned Costs ? None noted Recommendation ? We recommend a more detailed and frequent review of the payroll register used to prepare the time and effort certifications should be performed and documented. Management?s Response ? Management agrees with the finding.