Finding 39385 (2022-002)

Finding No. 2022-002: Payroll Testing Errors Federal Program Affected: U.S. Department of Education Governor?s Emergency Education Relief Fund (CFDA #84.425C) Compliance Requirement: Allowable Costs/Cost Principles Questioned Costs: None Condition and Cause: During our testing of 17 payroll transactions, we noted one instance in which a timecard did not have proper review sign-offs. However, we were able to verify the employee was properly charged to the grant. Criteria and Effect: Uniform Guidance requires adequate documentation, including support for all payments made. Lack of adequate documentation could result in questioned costs. Repeat Finding from Prior Year: Yes - Finding No. 2021-003. Recommendation: Management made significant improvements in the payroll process in 2022. We recommend continued diligence and training to ensure all internal control processes are followed. Response/Corrective Action Plan: The Organization agrees with the above finding. See Corrective Action Plan.