Finding Text
2024-001 U.S. Department of Treasury, Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Program for the period of July 1, 2023 through June 30, 2024
Criteria: Uniform Guidance section 2 CFR 200.430(g) Standards for Documentation of Personnel Expenses requires records to support the distribution of employee salaries or wages when they are allocated amongst more than one Federal award or a Federal award and a non-Federal award. Budget estimates alone do not qualify as support for charges to Federal awards.
Condition: During our testing of payroll expenditures at the School Department over the Coronavirus State and Local Fiscal Recovery Funds Program, we were unable to obtain actual time worked for employees split between multiple grants or Federal and non-Federal activities. Employee time was allocated based on budget estimates throughout the year.
Cause: There is currently no system in place to require staff split between multiple grants or Federal and non-Federal activities to maintain weekly timesheets reflecting actual time worked.
Effect: Actual time worked could differ from budgeted estimates. Without adequate support, payroll charges could be deemed unallowable.
Known Questioned Costs: $4,422
Likely Questioned Costs: $31,105
Recommendation: We recommend a timesheet system be implemented to ensure that employees split between multiple grants or Federal and non-Federal activities are charging actual time worked to the applicable Federal grant.