Finding Text
Allowable Costs - Criteria: Charges to federal awards for salaries and wages, whether treated as direct or indirect costs, must be based on records that accurately reflect the work performed. Condition: In our payroll sample for testing internal controls over compliance and compliance with major federal program requirements, we noted one employee with a portion of her salary ($7,385) charged to Title 1 for which there was a lack of appropriate documentation to support this charge. The federal government requires there be support for the distribution of an employee’s federal salary or wages. Effect: The District is not in compliance with allowable costs as they relate to payroll for Title 1. Cause: The District was not aware that an employee performing the same function and paid from different funding sources was required to have a semi-annual certification on file (SC Department of Education requirement) or otherwise document the change to salary being charged to a federal program. Questioned Costs: Unknown. Recommendation: We recommend that the District ensure that each employee being paid with federal funds has completed a semi-annual certification or personnel activity record to support time spent on the cost objectives of the federal program. In cases where a time sheet is used, it should include the employee’s full name, position, specific dates and times worked on the program, calculation of time worked or other time (sick, vacation, holiday), the employee’s signature and date, and the supervisor or approving agency official’s signature and date.