FAC Explorer

Finding 551139 (2024-003)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-03-31
Audit: 352063
Organization: Unique People Services - Aids Programs, Inc.. (NY)
Auditor: Cbiz CPAS PC

AI Summary

  • Core Issue: Salary and wage charges to Federal awards were based on budget estimates, not actual work performed.
  • Impacted Requirements: This violates 2 CFR 200.430, which requires accurate records of work performed.
  • Recommended Follow-Up: Unique-AIDS should implement a system to track and document actual hours worked to ensure compliance.

Finding Text

Criteria: In accordance with 2 CFR 200.430, charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Budget estimates alone do not qualify as support for charges to Federal awards. Condition: Salary and wages were charged based on budget estimates. UPS-AIDS does not have a system in place to corroborate the budgeted hours were the actual hours worked by allocated staff. Cause: The salaries and wages are not charged based on actual work performed. Effect: Unique-AIDS is not in compliance with 2 CFR 200.430. Questioned Costs: Undeterminable. Context: A random sampling of the federal expenditures. Repeat Finding: This finding was not corrected. See finding Item 2023-003 in the prior year findings. Recommendation: We recommend that Unique – AIDS establish a system to determine and document the time spent and amount charged to their programs.

Corrective Action Plan

UPS-AIDS has always used the budget allocations for wages and salaries in the past until this year that it becomes an issue. The finding was not corrected because management did not have sufficient time to prepare for the subsequent year after the previous year was submitted in a very short period of time. Nevertheless, we have agreed to comply as they have requested. However, we have agreed to comply with 2 CFR 200.430. Ive Pierre, Chief Financial Officer, will implement a time study by June 30, 2025.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 551140 2024-003
    Significant Deficiency Repeat
  • 1127581 2024-003
    Significant Deficiency Repeat
  • 1127582 2024-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.241 Housing Opportunities for Persons with Aids $483,635
93.558 Temporary Assistance for Needy Families $160,722