Finding Text
U.S. Department of Education Higher Education Institutional Aid CFDA 84.031 Award Year 2022 Criteria or Specific Requirement - Allowable Costs. According to 2 CFR Section 200.403(b), allowable costs must conform to any limitations or exclusions set forth in these principles or in the Federal award as to types or amount of cost items. Condition - The College charged faculty and staff wages unrelated to the Title V program to the grant during the fiscal year ended June 30, 2022. Questioned Costs - Grant Award Number: P031S190265 - 21. Error resulted in questioned costs of $34,056 awarded to the College. During review of the detailed listed of Title V revenue recorded, we identified certain expenses that did not appear consistent with the detailed federal grant schedule provided by management. Context - Out of a population of 26 payroll periods totaling $261,616, we selected one key item for $34,056 and a sample of four payroll periods totaling $27,661 to review the salaries paid to employees and charged to the federal award. The entire balance of the $34,056 key item was drawn down in error for staff wages and fringe benefits which were not related to the approved federal grant services. The sample was not, and was not intended to be, a statistically valid sample. Effect - College records did not support the salary expenses charged to the federal award. Cause - Management oversight when completing salary reconciliation. Identification as a Repeat Finding - Yes, see findings 2021-004 and 2020-009. Recommendation - The College should implement processes and controls to ensure that all employees paid with federal grant funds are compared against the budget amounts provided to the grant administrator. Views of Responsible Officials and Planned Corrective Actions - Adjustments have been made to drawdowns in April and June of 2022 in order to correct for these overdraws. However, even after these corrections, $694.47 was still overdrawn from FY22. This amount will be corrected in a future Title V draw for this amount. Salary drawdowns will be required to have backup payroll documentation for each draw in the future.