Finding 520036 (2023-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2025-01-23

AI Summary

  • Core Issue: Unique – AIDS charged salaries to Federal awards based on budget estimates, not actual work performed, violating 2 CFR 200.430.
  • Impacted Requirements: Compliance with federal regulations requires accurate records of work performed to support salary charges.
  • Recommended Follow-Up: Unique – AIDS should implement a system to track and document time spent on programs to ensure compliance.

Finding Text

In accordance with 2 CFR 200.430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Budget estimates alone do not qualify as support for charges to Federal awards. For the year ended June 30, 2023, Unique – AIDS did not maintain support for salary based on work performed. Salary and wages were charged based on budget estimates. The salaries and wages are not charged based on actual work performed. Unique-AIDS is not in compliance with 2 CFR 200.430. No questioned costs reported. The context is a random sampling of the federal expenditures. This is not a repeat finding from the prior year. We recommend that Unique – AIDS establish a system to determine and document the time spent and amount charged to their programs.

Corrective Action Plan

Unique – AIDS has read the proposed recommendations and has agreed to comply although our funding sources has never had any issues with the allocation methods being used since inception. Unfortunately, we are not able to modify the budget estimates for the past fiscal year. Rest assured that going forward, Unique People Services will strive to maintain its books as recommended with the time study for the very few employees that have been allocated to the two programs being impacted by the audit field work. Please note that it has never been our intentions not to comply with the regulations, but since the issues were never raised or brought to light in prior years, we felt that it was not necessary to alter the process. However, going forward, we are committed to fully comply with 2 CFR 200.430 charges to Federal awards for salaries and wages in order to accurately reflect the work performed by our employees and anticipate to have this completed by February 28, 2025. The Chief Financial Officer, Ive Pierre, is monitoring this process

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 520037 2023-003
    Significant Deficiency
  • 520038 2023-003
    Significant Deficiency
  • 520039 2023-003
    Significant Deficiency
  • 520040 2023-003
    Significant Deficiency
  • 520041 2023-003
    Significant Deficiency
  • 520042 2023-003
    Significant Deficiency
  • 1096478 2023-003
    Significant Deficiency
  • 1096479 2023-003
    Significant Deficiency
  • 1096480 2023-003
    Significant Deficiency
  • 1096481 2023-003
    Significant Deficiency
  • 1096482 2023-003
    Significant Deficiency
  • 1096483 2023-003
    Significant Deficiency
  • 1096484 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.241 Housing Opportunities for Persons with Aids $73,975
93.558 Temporary Assistance for Needy Families $34,495