Finding Text
Statement of condition: Contracts are not maintained for employees. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.430(g)(1)(i) requires that salaries and wages charged to federal awards must be supported by a system of internal controls that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. The School’s control of reviewing and approving of time certifications and timesheets and providing evidence of this review and approval through signature of appropriate personnel meet this regulation, however, without a contract to support an employee’s pay, the allocation of pay to be charged to the program is unable to be determined. Cause of condition: Management has not kept or maintained a copy of an employee’s contract. Effect of condition: Due to management’s inability to provide a copy of an employee’s contract, we were unable to determine whether the employee’s pay was properly allocated to the program based on the employee’s completed time certification. Context: A sample of 40 employees paid with Education Stabilization funds were selected for testing. Management was unable to provide a copy of 1 employee’s contract. This resulted in $477 in questioned costs. Recommendation: To ensure the accuracy of salaries and wages that are allocated to federal award programs, management should maintain a copy of all employee contracts. Views of responsible officials and planned corrective actions: Management agrees with this finding and will ensue copies of all employee contracts are maintained. See 2023-004 for management’s detailed action plan, timeline, and the responsible parties for all Education Stabilization Fund findings.