Finding Text
2022-001. Payroll (Allowable Costs/Cost Principles) United States Department of Education, Passed-through New York State Department of Education: Education Stabilization Funds (ESF) COVID-19: American Rescue Plan ? Elementary and Secondary School Emergency Relief (ARP ESSER) Assistance Listing No. 84.425U Criteria: Salaries and wages charged to Federal awards must be supported by documentation prescribed by the Uniform Guidance at Subpart I, 2 CFR ?200.430. Condition: Subpart I, 2 CFR ?200.430 of the Uniform Guidance requires that charges to ?Federal awards for salaries and wages must be based on records that accurately reflect the work performed.? The documentation should support the distribution of the employee?s compensation among specific activities if the employee works on more than one Federal award, or a Federal award and non-Federal award. The preparation of personnel activity reports (PARs) or periodic certifications or the equivalent is the most effective way to comply with this requirement. During the current year, the District failed to prepare periodic certification equivalents correctly, to comply with Subpart I, 2 CFR ?200.430. Cause: The employee that was responsible for assisting and maintaining the records that accurately reflect the work performed, as described in Subpart I, 2 CFR ?200.430, to support salaries charged to Federal awards, left the District, and these forms had not been prepared since there was no replacement for the employee during the year. Effect: Noncompliance could result in the incorrect amount for services rendered being charged to the Federal award. Questioned Costs: None reported. Context: Total population size of payroll was 91. Audit sample size was 15% of population, which totaled 14, haphazardly selected for audit testing. The finding was identified on 3 out of the 14 samples tested. Recommendation: The District should prepare the appropriate documentation to support salaries and wages determined by services performed that are charged to Federal awards in accordance with the requirements of the Uniform Guidance at Subpart I, 2 CFR ?200.430 Views of Responsible Officials of Auditee: The District replaced the employee that left the District, and the new employee is being trained on ensuring the appropriate documentation will be prepared to support the compliance with Subpart I, 2 CFR ?200.430.