FAC Explorer

Finding 520584 (2023-004)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2025-01-28
Audit: 340199
Organization: Association for Energy Affordability, Inc. (NY)
Auditor: Cbiz Cpa's

AI Summary

  • Core Issue: AEA charged salaries and wages to Federal awards without proper documentation reflecting actual work performed.
  • Impacted Requirements: This practice violates 2 CFR 200.430, which requires accurate records for salary charges.
  • Recommended Follow-Up: AEA should implement a system to track and document employee time and charges 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 December 31, 2023, AEA did not maintain support for salary based on work performed. Salary and wages were charged based on a flat rate for all employees. The salaries and wages are not charged based on actual work performed. AEA is not in compliance with 2 CFR 200.430. There are no questioned costs reported. A random sampling of the federal expenditures. This is not a repeat finding from the prior year. We recommend that AEA establish a system to determine and document the time spent and amount charged to their programs.

Corrective Action Plan

In 2025, the Chief Financial Officer in conjunction with the entire fiscal team is implementing a time and effort process using the Salesforce platform. The staff will indicate the hours worked in each project/grant daily. Laura Perozo, Chief Financial Officer, is monitoring this process and will make this correction by June 30, 2025.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 520585 2023-004
    Significant Deficiency
  • 520586 2023-004
    Significant Deficiency
  • 520587 2023-004
    Significant Deficiency
  • 520588 2023-004
    Significant Deficiency
  • 520589 2023-004
    Significant Deficiency
  • 520590 2023-005
    Significant Deficiency
  • 520591 2023-005
    Significant Deficiency
  • 520592 2023-005
    Significant Deficiency
  • 520593 2023-005
    Significant Deficiency
  • 520594 2023-005
    Significant Deficiency
  • 520595 2023-005
    Significant Deficiency
  • 1097026 2023-004
    Significant Deficiency
  • 1097027 2023-004
    Significant Deficiency
  • 1097028 2023-004
    Significant Deficiency
  • 1097029 2023-004
    Significant Deficiency
  • 1097030 2023-004
    Significant Deficiency
  • 1097031 2023-004
    Significant Deficiency
  • 1097032 2023-005
    Significant Deficiency
  • 1097033 2023-005
    Significant Deficiency
  • 1097034 2023-005
    Significant Deficiency
  • 1097035 2023-005
    Significant Deficiency
  • 1097036 2023-005
    Significant Deficiency
  • 1097037 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $1.73M
81.042 Weatherization Assistance for Low-Income Persons $101,636