Finding Text
2024 – 003: Allowable Costs
Federal Agency: U.S. Department Education
Federal Program Name: Education Stabilization Fund
Assistance Listing Number: 84.425
Pass-Through Agency: Indiana Department of Education
Pass-Through Numbers: S425D210013, S425D210013, S425W210015
Award Period: July 1, 2023 – June 30, 2024
Type of Finding:
• Significant Deficiency in Internal Control Over Compliance
• Other Matters
Criteria or specific requirement: The Compliance Supplement requires that compensation for personal services be charged to the federal grant based upon approved actual time worked on the program and not based on an allocation or budget (2 CFR 200.430(i)).
Condition: While performing audit procedures, it was noted that payroll expenses were charged to the grant program but were not supported with time and effort documentation and was for an employee bonus.
Questioned costs: $6,631
Context: During the process of obtaining an understanding of internal controls and processing of payroll expenditures, we noted payroll charge to the grant did not have time and effort documentation for amounts charged to the grant and included a bonus employee charged to the grant inaccurately.
Cause: Salary figures for salaried employees were charged to the federal grant based on unsupported work actually performed for the program and inaccurate payroll costs were charged to the grant for an employee bonus.
Effect: NWILCS has not fully followed compliance attributes with the allowable costs principles set forth by the Compliance Supplement related to allocation of salaries being charged based on approved time worked for a program. Personnel need to reinforce policies to ensure control procedures are in place to ensure salaries charged to a grant are appropriately based on actual approved time worked in a program.
Repeat finding: No.
Recommendation: We recommend NWILCS ensure policies and procedures for payroll expenditures for grant programs be charged to the federal grant based on approved hours worked in the program.
Views of responsible officials: There is no disagreement with the audit finding.