Finding Text
Criteria
Part 2, CFR Part 200.430 notes “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed”. The document continues to state that documentation 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 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
While performing tests of the Garden’s internal controls over payroll transactions, we noted the Garden had incorrectly allocated time of 8 of the 40 selections.
Cause of Condition
The Garden has not implemented proper internal control policies to adhere to the requirements of the Uniform Guidance.
Effect of Condition
Noncompliance may impact future funding from Federal awards.
Recommendation
We recommend the Garden implement proper internal control procedures to document hours worked, by employee, by grant; and maintain the documentation to support charges allocated to each Federal award.