Finding Text
Finding number: 2022-004: Allowable Costs/Cost Principles, Research & Development
Cluster
Criteria: Per Part 3 of the Compliance Supplement, charges to Federal awards for salaries
and wages must be based on records that accurately reflect the work performed.
These records must: (i) Be supported by a system of internal control which
provides reasonable assurance that the charges are accurate, allowable, and
properly allocated (ii) Be incorporated into the official records of the non-Federal
entity.
Condition: ABS Institute was unable to provide support documenting title, job description
and pay rate for multiple employees.
Cause: Documentation of title, job description and pay rate was not maintained.
Effect or potential
effect:
Possibility of unallowable costs allocated to grants.
Identification as a
repeat finding:
This is a repeat finding from the immediate previous audits, 2021-004 and 2020-
003.
Recommendation: We recommend that ABS Institute retain documentation to support employee’s
title, job description and pay rate.
Views of responsible
official:
ABS Institute has made the following changes in response to this finding:
In connection with pay increases that were completed in January 2023, we put in
place written documentation for each employee related to their title and pay rate.
In addition, all employees hired in 2022 and 2023 have an executed offer letter