Finding Text
COST PRINCIPLE - COMPLIANCE FINDING: The Organization did not use actual expense amounts in payroll expense calculations. 0MB Uniform Guidance §200.400 details the policy guide for cost principles to ensure proper and efficient administration of the Federal award of which only actual expenses incurred are to be charged against the funds. The Organization's federal funding significantly increased in the year ended June 30, 2022 and wass the first year that the Organization was required to undergo an audit in accordance with the Uniform Guidance. The Organization was not aware of the requirements to charge actual expense amounts under the Uniform Guidance. During the year ended June 30, 2023, corrective actions were taken but the condition was still present during the year. Estimated amounts were used in calculating monthly invoices, so it is more likely that the Organization's expense practices will not comply with the Uniform Guidance. The Organization should use actual wage expense amounts rather than estimates in accordance with the Uniform Guidance.