Finding Text
2023-004: U.S. Department of Labor, State of Washington – Service Washington, State of California –
California Volunteers, State of Kentucky – KY Cabinet of Health and & Family Services,
94.006 AmeriCorps State and National
Allowable Costs/Costs Principles
Significant Deficiency in Internal Control Over Compliance
Grant Award
Number: GCU8PW8ZDXN8, G6Y2ZAMJJRA9, LECJQDCLHVE5, and 22ND243641
Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) section 200.430 provides that records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.
Condition: Amounts for certain personnel costs were not reimbursed at the correct pay rate for certain employees.
Cause: Monthly pay rates used to calculate personnel costs were not consistently applied in accordance with the Organizations methodology.
Effect: The Organization underbilled for allowable personnel costs.
Questioned Costs: None noted.
Context/sampling: A nonstatistical sample of 24 payroll transactions out of a population of 155 was selected for testing, which accounted for $54,313 of $540,524 of federal program expenditures. We noted an error in the payroll rates used for 6 individuals for a total of $1,064.
Report Finding from
Prior Year(s): No.
Recommendation: We recommend iFoster, Inc. enhance the internal controls over the calculation of personnel costs.
Views of Responsible
Officials: iFoster, Inc. agrees with this finding; see corrective action plan.