Finding Text
Criteria or Specific Requirements: Payroll costs charged to federal awards should be reviewed and approved by a responsible party. Condition: Payroll costs charged to the federal award did not agree with the payroll costs in the accounting system or payroll reports. Cause: Tracking for federal expenditures is kept outside of the accounting system and reports from the accounting system are not reconciled regularly with the federal submissions. Context and Effect: Each month, the grant submissions include payroll transactions. 3 of 83 transactions tested did not reflect the actual amount paid to the employee. The net impact of the errors was immaterial, but the errors indicate a control deficiency in accurately reporting payroll costs. Questioned Costs: Unknown. Repeat Finding: Similar finding was reported in the prior year. Recommendations: We recommend the grant reports are reconciled monthly with the accounting records and payroll records before submission. Views of Responsible Officials and Planned Corrective Actions: We agree with the finding of the auditor and are working to implement the recommendation.