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.