Finding Text
Finding 2024-002: Time Tracking and Payroll Allocations (Material Weakness)
See Section III - Federal Award Findings and Questioned Costs (2 CFR 200.516(a))
Information on the Federal Programs: Assistance Listing Number 98.001
Criteria: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 “Compensation –
personal services” requires that charges to Federal awards for salaries and wages must be based on
records that accurately reflect the work performed, and that these records must be supported by a
system of internal control which provides reasonable assurance that the charges are accurate,
allowable, and properly allocated. Additionally, these records must comply with established
accounting policies and practices of the non-Federal entity.
Condition: As part of our audit procedures around payroll, we noted instances of payroll allocations
to programs which did not accurately represent the time worked and/or salary rate of the employee.
While misallocations were not significant in their amounts, the errors themselves suggest the need
for more detailed review of the payroll allocation approval and entry process.
Cause: The review of the payroll allocation entry and process was not sufficient to catch the errors.
Context: The misallocations identified represent 10% of the sampled employees (4 out of 40).
Although the majority of payroll allocations were supported by appropriate documentation, these four
exceptions suggest a need for improved controls over time and effort reporting to prevent isolated
errors from becoming more systemic issues.
Effect: Astraea could inadvertently mischarge salaries and wages to its various programs.
Questioned Costs: Undetermined.
Identification as a Repeat Finding, if Applicable: Finding 2023-003
Recommendation: We recommend that the finance department perform a more detailed review of
the monthly program allocations to ensure complete and accurate entry of payroll allocations.