Finding Text
#2022-004 ? Significant Deficiency ? Allowable Costs Community Service Block Grant, CFDA # 93.569 Criteria The Office of Management and Budget issuance of the Code of Federal Regulations (CFR) specifically states uniform administrative requirements, cost principles, and audit requirements for federal awards. CFR 200.430 states, ?Charges to Federal Awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated.? Condition During the course of the audit, it was determined certain compensation payments were incorrectly allocated to a funding source which did not allow for that type of compensation. This administrative error was corrected. Cause The cause is the result of human error. Effect The potential effects of not reconciling contemporaneous time and effort reporting to allocated payroll expenses could include an over or understatement of compensation payments allocated to the federal grant. Questioned Costs Questioned costs amount to $27,727. Perspective Information This finding was consistent for the fiscal year. Identification as a repeat finding There was no single audit requirement in the prior year and therefore, this finding is not reported as a repeated finding. Recommendation We recommend maintaining weekly timesheets with CEO approval, itemized by time allocated per grant. The financial statement records should be supported by direct time allocated to the grant as indicated on the approved timesheets. View of Responsible Official CAAP will do its due diligence in appropriately allocating costs should similar costs be incurred.