Finding Text
Criteria:
200 CFR Subpart E
Condition:
As required by the grant agreement, the Company had to keep record in the employee’s file any reports from disciplinary actions against the employees that were paid under this federal grant. However, for 2 of the employees selected for testing, the Company did not keep evidence of such disciplinary actions in the employee’s file.
In the other hand, as per the grant agreement, the Company must keep all documentation and records related to this federal grant following the requirements of the local government for the safekeeping of financial documents and public records, which is six (6) years, and this requirement was not met.
Cause:
In the case of evidence of disciplinary actions against the employee not kept in file, it was an isolated instance. In the other hand, the safekeeping of documentation related to federal grants, it was caused by the inadvertence of the Company’s management of the existence of this requirement.
Effect:
The Company could not provide the audit team with the disciplinary actions taken against one of the employees that was paid under this federal grant.
Recommendation:
The Company must obtain a good understanding of all requirements included in the grant agreement and ensure to keep evidence of compliance of such requirements for future reference and to provide evidence to any examination from the granting agency.
Views of responsible officials:
See Corrective Action Plan