Finding Text
Criteria
According to Section 2 CFR Part 2 00.430 (i) Standard for Documentation of Personnel Expenses, Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. The records must support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award, a federal award, and a non-federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.
Condition
Controls were inadequate to ensure the Academy maintained timekeeping documentation of individuals assigned to Title I.
Questioned Cost
Questioned costs include the wages, benefits, and applicable charges for employees whose time and effort reports were unavailable. The total wages, benefits, and applicable taxes totaled $97,564 in FY 22 for the employees selected for testing. Management was unable to provide support for the salaries, wages, benefits, and applicable taxes for the other employees assigned to the grant.
Context
During the testing allowability of Title I expenses, we discovered personnel expenses charged to Title I without time and effort support, i.e., a personal activity report or semi – certification reports. The Academy utilized budget estimates according to the approved consolidated application instead of actual time-keeping documentation.
Cause and Effect
The Academy didn’t require staff charged to multiple federal grants to prepare documentation that support hours worked in Title I.
Management’s Response
The Academy has put in place additional staff to monitor time and effort support, personal activity reporting, and certification processes around the Title I program.