Finding Text
Allowable Costs/Cost Principles - Payroll Allocations
Finding Type: Significant Deficiency in Internal control over compliance and noncompliance
Federal Program Title and AL Number: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) (93.323).
Criteria: According to 2 CFR Section 200.430, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed.
Condition and context: Payroll costs charged to the program were not based on actual hours worked. This condition was noted for two statistically valid samples.
Cause: The Organization’s internal controls did not ensure compliance with 2 CFR Section 200.430.
Effect: Estimated payroll charges to the federal award were not adjusted to reflect actual time spent.
Questioned Costs: $15,701 (known), $94,514 (likely).
Repeat finding: No.
Recommendation: We recommend the Organization implement procedures to review and approve time spent on each award.
Views of responsible officials and planned corrective actions: Management concurs with the finding and recommendation. Please see the attached corrective action plan.