Finding Text
Finding Type. Immaterial Noncompliance; Significant Deficiency in Internal Control over Compliance (Allowable Costs/Cost Principles). Program. U.S. Department of Education; Education Innovation and Research, Supporting Preschool and Kindergarten Students; ALN 84.411C; Award Number U411C160089. Criteria. The Uniform Guidance requires the Organization to support payroll charged to federal grants with adequate documentation in accordance with the Organization's payroll policies. Condition. In four instances out of a sample of twelve transactions, wages charged to the grant were in excess of the actual wages. In addition, there was no evidence of review and approval for any of the twelve transactions tested. Cause. This condition appears to have been caused by manual error and a lack of proper review which may have detected the errors. Effect. As a result of this condition, the Organization over charged wages to the federal grant. Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as the actual and projected error was de minimus. Recommendation. We recommend that a supervisory review be performed and documented for payroll calculations to ensure payroll expenses charged to the federal grant are allowable and supported by appropriate documentation. View of Responsible Officials. In the policy for federal grants, it addresses the review of all expenses to ensure incorrect calculations do not happen. This includes a detailed supervisory review of payroll reports.