Finding Text
Federal Agency: U.S. Department of Transportation
Federal Program Name: Formula Grants for Rural Areas and Tribal Transit Program
Assistance Listing Number: 20.509
Federal Award Identification Number and Year: 2024; FAIN not available.
Pass-Through Agency: State of Vermont Agency of Transportation and Tribal Transit Program
Pass-Through Number(s):
EA#COVIDFTA-934 EA#FT202201-704 EA#FT24FLEX-454
EA#CRRSAA22-934 EA#FT23FLEX-064 EA#FT24FLEX-554
EA#FT201806-454 EA#FT23FLEX-454 EA#FT24FLEX-854
EA#FT201806-554 EA#FT23FLEX-554 EA#FT24FLEX-954
EA#FT201806-954 EA#FT23FLEX-954 EA#FT24FORM-454
EA#FT201903-704 EA#FT23FORM-064 EA#FT24FORM-924
EA#FT202104-704 EA#FT23FORM-934 EA#FT24FORM-934
EA#FT202104-954 EA#FT24FLEX-064
Award Period: July 1, 2023 through June 30, 2024
Compliance Requirement: Allowable Costs / Cost Principles
Type of Finding: Significant deficiency in internal control over compliance and other matter
Criteria or specific requirement: The United States Code of Federal Regulations (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. Such records should support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on a federal award and a non-federal award. Additionally, 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
Condition: We noted that for a sample of payroll disbursements, the distribution of the employees’ salaries among activities and cost objectives was not supported by the underling records used to calculate said distribution.
Questioned costs: None above the reportable threshold.
Context: Seven (7) of forty payroll transactions were selected for testing in our statistically valid sample.
Federal Agency: U.S. Department of Transportation
Federal Program Name: Formula Grants for Rural Areas and Tribal Transit Program
Assistance Listing Number: 20.509
Federal Award Identification Number and Year: 2024; FAIN not available.
Pass-Through Agency: State of Vermont Agency of Transportation and Tribal Transit Program
Pass-Through Number(s):
EA#COVIDFTA-934 EA#FT202201-704 EA#FT24FLEX-454
EA#CRRSAA22-934 EA#FT23FLEX-064 EA#FT24FLEX-554
EA#FT201806-454 EA#FT23FLEX-454 EA#FT24FLEX-854
EA#FT201806-554 EA#FT23FLEX-554 EA#FT24FLEX-954
EA#FT201806-954 EA#FT23FLEX-954 EA#FT24FORM-454
EA#FT201903-704 EA#FT23FORM-064 EA#FT24FORM-924
EA#FT202104-704 EA#FT23FORM-934 EA#FT24FORM-934
EA#FT202104-954 EA#FT24FLEX-064
Award Period: July 1, 2023 through June 30, 2024
Compliance Requirement: Allowable Costs / Cost Principles
Type of Finding: Significant deficiency in internal control over compliance and other matter
Criteria or specific requirement:
The United States Code of Federal Regulations (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. Such records should support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on a federal award and a non-federal award. Additionally, 2 CFR 200.303 indicates that non-Federal entities receiving Federal awards must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
Condition: We noted that for a sample of payroll disbursements, the distribution of the employees’ salaries among activities and cost objectives was not supported by the underling records used to calculate said distribution.
Questioned costs: None above the reportable threshold.
Context: Seven (7) of forty payroll transactions were selected for testing in our statistically valid sample.
Cause: The procedures implemented to calculate and allocate the distribution of payroll charges to cost objectives did not prevent certain distributions which did not agree to the underlying records.
Effect: Unallowable costs were charged to the program.
Repeat Finding: No.
Recommendation: We recommend management enhance procedures and controls to ensure that the distribution of payroll costs charged to the grant are verified against the underlying records supporting the distribution allocation.
Views of responsible officials: Management agrees with the finding.