Finding Text
Criteria: Section 200.430 of 2 CFR Part 200 states standards for documentation for personnel expenses for the support of federal salaries and wages.
Condition/Effect: The Institute did not fully comply with the South Carolina Department of Education’s (“SCDE”) requirements for support for federal salaries and wages with regard to budget estimates used for interim accounting purposes. At least quarterly, comparisons of actual costs to budgeted distributions based on the monthly activity reports should be made. Costs charged to federal awards to reflect adjustments made as a result of the activity actually performed may be recorded annually if the quarterly comparisons show the differences between budgeted and actual costs are less than ten percent. The budget estimates should be revised at least quarterly, if necessary, to reflect changed circumstances.
Cause: The Institute’s internal controls over salaries and wages charged to federal programs were not operating effectively to ensure that the budget estimates were reviewed quarterly and the costs charged to the federal program were adjusted based on the activity actually performed.
Recommendation: The Institute should implement procedures to ensure any budget estimates used for salaries and wages are reviewed quarterly and adjusted to reflect actual cost for the activity performed in accordance with the SCDE requirements.
Views of Responsible Officials and Planned Corrective Actions: The Institute agrees with the finding and has proactively taken action to ensure compliance with SCDE requirements. See management's corrective action plan.