Finding Text
2024-002 Significant Deficiency
Federal Program
Medicaid Cluster (AL 93.778)
Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Criteria
Per 2 CFR Part 200, Subpart E (Cost Principles), expenses charged to federal awards should be free of
improper payments, including payments that should not have been made or that were made in incorrect
amounts (including overpayments and underpayments).
Condition
One employee was underpaid for one payroll period tested.
Questioned Costs
N/A
Context
A sample of 40 transactions was selected for testing which consisted of 37 payroll transactions and 3
nonpayroll/vendor transactions. One employee tested was underpaid for the specific pay period tested, as the
pay rate used was not the most recent approved rate of pay.
Cause
Oversight by County staff.
Effect
One employee was underpaid for one payroll period and this overpayment was charged to a federal award.
Repeat Finding
Yes. Prior audit finding 2023-002.
Recommendation
The County should review current procedures to ensure that employee rates are properly reviewed by the
supervisor and should consider an additional review or fail safe in the payroll system to ensure errors on
timecard hours are caught before payroll is processed.
Views of Responsible Officials and Planned Corrective Actions
The County agrees with the recommendation and will implement immediately.