Finding Text
Finding 2024-4 Internal Controls over Compliance and Compliance with Allowable Costs Requirement (Significant Deficiency)
Identification of the federal program(s):
Assistance Listings program titles and numbers:
21.027 Coronavirus State and Local Fiscal Recovery Funds
Federal award identification number:
21.027: City of Columbus (award number not provided), Future Ready Five (award number not provided), Franklin County Department of Job and Family Services Award Number 25-22-3647
Name of the federal agencies:
21.027 Department of the Treasury
Name of the applicable pass-through entities:
21.027: City of Columbus, Future Ready Five, Franklin County Department of Job and Family Services
Criteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.303 of the Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.
Condition: During the audit, it was noted that an employee’s time was improperly allocated to the improper grant. This misallocation resulted in inaccurate payroll expenses being reported for the respective grants/programs.
Cause: Employee was miscoded when entering into the payroll register.
Effect or potential effect: Without adequate internal controls in place to ensure that all charges to the federal program are properly reviewed for allowable costs, AFC could be noncompliant with the allowable costs requirement and could request funds for costs that are unallowed.
Questioned costs: $3,860
Context: AFC’s policies and procedures did not detect a misallocation of employee’s time. An error of $3,860 was found in $14,396 total payroll tested.
Identification as a repeat finding, if applicable: Not applicable
Recommendation: We recommend that AFC implement a procedure to monitor employee allocations for accurate charging to grant programs.
Views of responsible officials: Management agrees with the finding and recommendation.