Finding Text
2024-004 Community Development Block Grants, ALN 14.218
Federal Award Identification Number and Year: B-23-MC-25-0019, 2024
Award Period: July 1, 2023 through June 30, 2024
Compliance Requirement: Allowable Costs/Cost Principles
Criteria or Specific Requirement: (CFR) Title 2 Part 200.430 indicates charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Such records must also reasonably reflect the total activity for which the employee is compensated by the non-Federal entity.
Condition and Context: For one of forty payroll disbursements in our sample, evidence of management's review of time and effort was not provided.
Questioned Costs: None.
Cause: Procedures were not implemented effectively to ensure all attestations of time and effort were reviewed and approved by supervising officials.
Effect: While time and effort dedicated to cost objectives was documented for the instance in questions, the risk of noncompliance with federal program requirements is present due to the lack of approval from the payroll documentation.
Repeat Finding: No.
Recommendation: We recommend procedures be strengthened to ensure management's review and approval of time and effort attestation is present on supporting documentation maintained for payroll costs.
Views of Responsible Officials: Management agrees with the finding.