Finding Text
Criteria or specific requirement: Per guidance: 2 CFR 200.430, (i) Standards for Documentation of Personnel Expenses, (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.Condition: We noted the College?s Time and Effort is originally based upon an estimate at the beginning of the year. While the employee does later certify the estimate is correct (or submits any adjustments), this certification is only completed once a year and it is not reviewed or approved by anyone other than the employee. There was no control in place to detect if the employee?s certification was incorrect.Questioned costs: None.Context: We tested 40 employees and noted for all tested, while the employee certified their time and effort, this certification occurred once a calendar year from one to four months after the calendar year end. In addition, there was no review control to ensure certification was accurate, allowable, and properly allocated.Cause: The College was not aware there should be a distinct internal control over time and effort reporting.Effect: The College?s system of time and effort reporting does not have internal controls to provide reasonable assurance that payroll charges are based upon actual time incurred. As such, it could inadvertently be allocating personnel expenses inaccurately and improperly to federal awards.Repeat finding: No.Recommendation: We recommend that the College increase the time and effort certification process to be more timely and implement a review process over the time and effort certification process.View of responsible official: The College agrees with the finding.