Finding Text
2022-5 Criteria or Specific Requirement - The Uniform Guidance Section 200.430(i)(1) requires that 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. Condition and Context - The Organization did not charge its Federal award for salaries and wages based on actual time reporting. Effect - While the Organization does utilize a time tracking tool, the Organization did not utilize the reporting from the tool to determine its salary and wages allocation to its Federal awards. This deficiency puts the Organization at risk of drawdowns for salaries and wages that do not accurately reflect the work performed. Cause - The Organization did not utilize the reporting from its time tracking tool to determine its salaries and wages allocation to its Federal awards. Recommendation - The Organization should utilize the reporting from its time tracking tool to determine its salaries and wages allocation to its Federal awards and drawdown based on the allocation. Views of Responsible Officials and Planned Corrective Action - Management agrees with the finding. The Organization is implementing a new Payroll and Human Resources system. This single system will house the data for both time allocations and payroll data, giving the Organization the ability to run reports with accurate hours and compensation allocated to specific grants for any period. This system will report in real time and account for salary increases as well.