Finding Text
Finding 2023-003: Time Tracking and Payroll Allocations (Material Weakness)
Information on the Federal Programs: Assistance Listing Number 98.001
Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 “Compensation –
personal services” requires that charges to Federal awards for salaries and wages must be based on
records that accurately reflect the work performed, and that these records must be supported by a
system of internal control which provides reasonable assurance that the charges are accurate,
allowable, and properly allocated. Additionally, these records must comply with established accounting
policies and practices of the non-Federal entity.
Condition: As part of our audit procedures around payroll, we noted instances of payroll allocations to
programs which did not accurately represent the time worked and/or salary rate of the employee. While
misallocations were not significant in their amounts, the errors themselves suggest the need for more
detailed review of the payroll allocation approval and entry process.
Cause: The review of the payroll allocation entry and process was not sufficient to catch the errors.
Context: The misallocations identified represent 5% of the sampled employees (2 out of 40). Although
the majority of payroll allocations were supported by appropriate documentation, these two exceptions
suggest a need for improved controls over time and effort reporting to prevent isolated errors from
becoming more systemic issues.
Effect: Astraea could inadvertently mischarge salaries and wages to its various programs.
Questioned Costs: Undetermined.
Identification as a Repeat Finding, if Applicable: Finding 2022-003
Recommendation: We recommend that the finance department perform a more detailed review of the
monthly program allocations to ensure complete and accurate entry of payroll allocations.