Finding Text
Finding 2022-001 Significant deficiency in internal control over allowable costs. Federal Agency: Department of the Treasury Program Title: Emergency Rental CFDA Number: 21.023 Award Numbers: OH21-BBP1 Award Period: May 15, 2021 ? September 30, 2022 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart E section 200.430 requires that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition/Context for Evaluation During our audit, we tested salary costs charged to the federal award, noting compensation expenses consisted of the entire salary of one employee who did not work on more than one federal award and allocated compensation costs for multiple other employees. Allocated compensation costs were charged to the award based upon budget estimates which were not adjusted for actual time dedicated to the award and did not support the distribution of salary or wages among specific cost objectives. Questioned Costs Not applicable Effect or Potential Effect The Organization may have charged costs to the federal award in excess or below actual benefit received by the award. Repeat Finding Partially, see prior year finding 2021-002 Recommendation We recommend the Organization implement the necessary internal controls to ensure documentation is retained to support actual effort spent on federal awards. Views of Responsible Officials of Auditee Management concurs with the finding and has provided the accompanying corrective action plan.