Finding Text
Significant Deficiency in Internal Control over Compliance
2023-002 Special Education Cluster, ALN. 84.027, 84.173
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Allowable Costs/Cost Principles
Criteria or Specific Requirement: The Code of Federal Regulations (CFR) Title 2 Part 200.430 indicates charges to federal
awards for salaries and wages must be based on records that accurately reflect the work performed. These records
must be supported by a system of internal control which provides reasonable assurance that the charges are accurate,
allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee
is compensated by the non-Federal entity.
Condition and Context: For all of the payroll disbursements in our sample, evidence of management review of time and
effort was not provided.
Questioned Costs: None.
Cause: Procedures were not in place to document the management review of time and effort.
Effect: Significant deficiency in internal controls.
Repeat Finding: No.
Recommendation: We recommend procedures be strengthened to document and maintain on file the management
review of time and effort.
Views of Responsible Officials: Management agrees with the finding.