Finding Text
ALN: 84.126
Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States
Federal Agency: United States Department of Education
Pass-Through Entity: Texas Health and Human Services Commission
Award Number(s): HHS000186000005, HHS000202900008
Federal Award Year: 2022
Condition: During our review of payroll related transactions, 2 of the 25 payroll samples tested
did not have review and approval of the Supervisor on the timecard.
Criteria: 2 CFR section 200.303 – Internal Controls of the Uniform Guidance states that the nonfederal
entity must: (a) Establish and maintain effective internal controls over Federal award that
provides reasonable assurance that the non-Federal entity is managing the Federal award in
compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
These internal controls should be in compliance with guidance in “Standards for Internal Control
in the Federal Government” issued by the Comptroller General of the United States or the
“Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO). Per 2 CFR section 200.430 – Compensation – personal services, paragraph (i) Charges to Federal
awards for salaries and wages must be based on records that accurately reflect the work
performed.
Effect: The Entity may unintentionally under/over compensate what is applicable for the work
performed by that employee. This could lead to questioned costs and repayment of funds to the
Grantor agency.
Cause: The Entity does not have proper controls in place to verify that documentation was
maintained to indicate the employees’ time paid under the federal grant.
Questioned Costs: No questioned costs identified.