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 for this program. Where employees work on multiple activities or cost objectives, a distribution of their salaries or wages will be supported by personnel activity reports (PAR). This is required when employees work on more than one Federal award, a Federal award and a non-Federal award, an indirect cost and a direct cost activity, two or more indirect activities which are allocated using different allocation bases, or an unallowable activity and a direct or indirect cost activity. The PARS are required to meet the following standards: they must reflect an after the fact distribution of the actual activity of each employee, they must account for the total activity for which employee is compensated, they must be prepared at least monthly and coincide with one or more pay periods, and they must be signed by the employee.
Cause: The Institute’s internal controls over salaries and wages charged to federal programs were not operating effectively to ensure that the documentation for federal salaries and wages were completed in accordance with the requirements.
Questioned Costs: Not Determined
Recommendation: The Institute should implement procedures to ensure all documents to support the salaries and wages charged to federal programs are prepared 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.