Finding Text
Type of Finding: Significant Deficiency in Internal Control Over Compliance and Compliance Finding Criteria: The Uniform Guidance requires charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. In addition, these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated, be incorporated into the official records of the entity, and reasonable reflect the total activity for which the employee is compensated. Condition: During our testing of a sample of payroll transactions charged to the grant we noted one transaction for which the personnel activity report was not completed by the employee. Context: Of a sample of 40 payroll disbursement charged to the grant we noted one disbursement for which the supporting time and effort documentation did not agree to how the employee?s wages were allocated to the program, with the amount charged to the program being higher than the documentation indicated. The variance in wage allocation represented $169 of the total $8,664,062 in payroll which was charged to the grant. This was a statistically valid sample. Questioned Costs: None Cause: The employee went on maternity leave before filling out the PARS report. Effect: The District was not in compliance with the Uniform Guidance requirements around cost principles and time and effort documentation. Repeat Finding: No Recommendation: We recommend that the District reviews its procedures and controls over time and effort documentation for wages charged to Federal programs to ensure all documentation accurately reflects the work performed and that the time and effort documentation agrees with how the employee?s wages are allocated to the grant in the finance system. View of Responsible Official: There is no disagreement with the audit finding.