Finding Text
2022-013 ? Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Period of Performance ? Payroll ? Significant Deficiency Federal Program Information Funding Agency: Department of Defense, National Science Foundation, Department of Education, Department of Health and Human Services ? National Institute of Health Federal Award Agreement Number: Not Applicable Award Year: Fiscal year 2022 Title: Research and Development Cluster Assistance Listing Number: 12.598, 47.050, 47.076, 84.031, and 93.859 Pass-through Agency: Not Applicable, Direct Program Pass-through Identification Number: Not Applicable, Direct Program Condition - During our review of payroll related transactions, the following were noted. ? For one of 25 payroll transactions tested, the supervisor did not sign the timesheet. ? For one of 25 payroll transactions tested, the employee?s contract was not updated as of July 1, 2021 to the correct salary amount. Therefore, the employee was underpaid a total of $475.29 during the fiscal year. Criteria - 2 CFR 200.303(a) requires non-Federal entities to establish and maintain effective internal controls over compliance with Federal statutes, regulations, and the terms and conditions of grant agreements. 2 CFR 200.430(i)(1) requires that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must (i) be supported by a system of internal control, which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; and (ii) be incorporated into the official records of the non-federal entity. Questioned Costs - Not applicable. Effect - The College may unintentionally overpay or underpay employees during their fiscal year. Cause - The College could not locate payroll records due to transition within the payroll and HR departments. In addition, the unsigned timesheet was overlooked.