Finding 528779 (2024-003)

Finding 2024-003: Allowable Costs/Cost Principles—Payroll Calculation Errors—Significant Deficiency in Controls over Compliance and Noncompliance Federal Program: Coronavirus State and Local Fiscal Recovery Funds—ALN 21.027 Year(s): 2024 Federal Agency: U.S. Department of Treasury Contract—DHA SA-01-22/A2 Pass-Through Entity: Sacramento County Criteria—In accordance with 2 CFR 200.430 (g)(1) and (g)(1)(i) charges to Federal awards for salaries and wages must be based on accurate records and calculations. Condition/Context—Out of 31 payroll selections, 6 selections had calculation errors. In the process of recording the payroll cost for the grant, spreadsheet related errors were made in transferring the general ledger data into the reimbursement requests which were then used to populate the schedule of federal awards of expenditures. Questions Costs—Under the reportable threshold, hence not applicable Cause—The control to review the recording of the payroll general ledger details into the reimbursement request was not precise enough to identify the calculation errors. Effect—Incorrect cost can be charged to the grant which can lead to the potential disallowance of costs. Recommendation—We recommend the Division implement a more detailed and precise review process to ensure the accuracy and completeness of the reimbursement request. Views of the Responsible Officials—See Corrective Action Plan