FAC Explorer

Finding 610624 (2022-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 30456
Organization: Clarkson University (NY)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: Incorrect payroll charges to federal grants due to manual errors and lack of secondary review.
  • Impacted Requirements: Non-compliance with Uniform Guidance Section 200.430 and 2 CFR 200.303(a) regarding accurate payroll records and internal controls.
  • Recommended Follow-Up: Implement improved internal controls and review processes for payroll calculations before allocations to federal grants.

Finding Text

Finding Number: 2022-003 Program: Research and Development Cluster Federal Agency Name: Various Federal Award Year: July 1, 2021 ? June 30, 2022 Federal Assistance Listing Numbers: Various Criteria The Uniform Guidance Section 200.430 states that 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. Further, in accordance with 2 CFR 200.303(a), non-federal entities must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition During our testing of payroll allowability we noted 4 out of 71 payroll transactions tested were paid and charged to the grant incorrectly. Additionally, for 3 out of 71 payroll transactions the amount allocated to the grant was incorrect. The incorrect payments and allocations to grants were due to manual errors when processing payroll and related after the fact allocations to federal grants. We deemed this to be a material weakness in internal controls and noncompiance with the allowable costs compliance requirement. Our sample was not, and was not intended to be statistically valid. This finding is a repeat finding in the immediately prior audit finding 2021-003 Questioned Costs Unallowable payroll costs charged to the grants below FALN 12.300 $ 170 FALN 12.300 170 FALN 47.041 5,744 FALN 47.076 7 Total $ 6,091 Cause Manual calculations or clerical errors of the amount to be paid/and or allocated to the grant were made before being entered into the system. There was no secondary review of the calculation by someone other than the preparer.The University did not have an adequately designed internal control to identify calculation errors in applying payroll amounts to federal awards and as such, the amount of the errors and related non-compliance could have been greater and not detected by the University?s control environment. Effect Payroll amounts charged to federal grants are unsupported by actual time spent on the award and are thus unallowable. Recommendation We recommend that the University implement a more thorough and detailed process and related internal controls to review payroll authorization forms and manual calculations performed before the payroll allocation is recorded to the federal grant.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 29984 2022-003
    Material Weakness Repeat
  • 29985 2022-003
    Material Weakness Repeat
  • 29986 2022-003
    Material Weakness Repeat
  • 29987 2022-003
    Material Weakness Repeat
  • 29988 2022-003
    Material Weakness Repeat
  • 29989 2022-003
    Material Weakness Repeat
  • 29990 2022-003
    Material Weakness Repeat
  • 29991 2022-003
    Material Weakness Repeat
  • 29992 2022-003
    Material Weakness Repeat
  • 29993 2022-003
    Material Weakness Repeat
  • 29994 2022-003
    Material Weakness Repeat
  • 34155 2022-003
    Material Weakness Repeat
  • 34156 2022-003
    Material Weakness Repeat
  • 34157 2022-003
    Material Weakness Repeat
  • 34158 2022-003
    Material Weakness Repeat
  • 34159 2022-003
    Material Weakness Repeat
  • 34160 2022-003
    Material Weakness Repeat
  • 34161 2022-003
    Material Weakness Repeat
  • 34162 2022-003
    Material Weakness Repeat
  • 34163 2022-003
    Material Weakness Repeat
  • 34164 2022-003
    Material Weakness Repeat
  • 34165 2022-003
    Material Weakness Repeat
  • 34166 2022-003
    Material Weakness Repeat
  • 34167 2022-003
    Material Weakness Repeat
  • 34168 2022-003
    Material Weakness Repeat
  • 34169 2022-003
    Material Weakness Repeat
  • 34170 2022-003
    Material Weakness Repeat
  • 34171 2022-003
    Material Weakness Repeat
  • 34172 2022-003
    Material Weakness Repeat
  • 34173 2022-003
    Material Weakness Repeat
  • 34174 2022-003
    Material Weakness Repeat
  • 34175 2022-003
    Material Weakness Repeat
  • 34176 2022-003
    Material Weakness Repeat
  • 34177 2022-003
    Material Weakness Repeat
  • 34178 2022-002
    Material Weakness
  • 34179 2022-003
    Material Weakness Repeat
  • 34180 2022-003
    Material Weakness Repeat
  • 34181 2022-003
    Material Weakness Repeat
  • 34182 2022-003
    Material Weakness Repeat
  • 34183 2022-003
    Material Weakness Repeat
  • 34184 2022-003
    Material Weakness Repeat
  • 34185 2022-003
    Material Weakness Repeat
  • 34186 2022-003
    Material Weakness Repeat
  • 34187 2022-003
    Material Weakness Repeat
  • 34188 2022-003
    Material Weakness Repeat
  • 606426 2022-003
    Material Weakness Repeat
  • 606427 2022-003
    Material Weakness Repeat
  • 606428 2022-003
    Material Weakness Repeat
  • 606429 2022-003
    Material Weakness Repeat
  • 606430 2022-003
    Material Weakness Repeat
  • 606431 2022-003
    Material Weakness Repeat
  • 606432 2022-003
    Material Weakness Repeat
  • 606433 2022-003
    Material Weakness Repeat
  • 606434 2022-003
    Material Weakness Repeat
  • 606435 2022-003
    Material Weakness Repeat
  • 606436 2022-003
    Material Weakness Repeat
  • 610597 2022-003
    Material Weakness Repeat
  • 610598 2022-003
    Material Weakness Repeat
  • 610599 2022-003
    Material Weakness Repeat
  • 610600 2022-003
    Material Weakness Repeat
  • 610601 2022-003
    Material Weakness Repeat
  • 610602 2022-003
    Material Weakness Repeat
  • 610603 2022-003
    Material Weakness Repeat
  • 610604 2022-003
    Material Weakness Repeat
  • 610605 2022-003
    Material Weakness Repeat
  • 610606 2022-003
    Material Weakness Repeat
  • 610607 2022-003
    Material Weakness Repeat
  • 610608 2022-003
    Material Weakness Repeat
  • 610609 2022-003
    Material Weakness Repeat
  • 610610 2022-003
    Material Weakness Repeat
  • 610611 2022-003
    Material Weakness Repeat
  • 610612 2022-003
    Material Weakness Repeat
  • 610613 2022-003
    Material Weakness Repeat
  • 610614 2022-003
    Material Weakness Repeat
  • 610615 2022-003
    Material Weakness Repeat
  • 610616 2022-003
    Material Weakness Repeat
  • 610617 2022-003
    Material Weakness Repeat
  • 610618 2022-003
    Material Weakness Repeat
  • 610619 2022-003
    Material Weakness Repeat
  • 610620 2022-002
    Material Weakness
  • 610621 2022-003
    Material Weakness Repeat
  • 610622 2022-003
    Material Weakness Repeat
  • 610623 2022-003
    Material Weakness Repeat
  • 610625 2022-003
    Material Weakness Repeat
  • 610626 2022-003
    Material Weakness Repeat
  • 610627 2022-003
    Material Weakness Repeat
  • 610628 2022-003
    Material Weakness Repeat
  • 610629 2022-003
    Material Weakness Repeat
  • 610630 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $27.58M
84.038 Federal Perkins Loan Program $3.59M
84.425 Education Stabilization Fund $3.20M
84.063 Federal Pell Grant Program $2.84M
66.469 Great Lakes Program $1.02M
47.070 Computer and Information Science and Engineering $723,533
84.033 Federal Work-Study Program $584,074
84.007 Federal Supplemental Educational Opportunity Grants $440,184
84.042 Trio_student Support Services $300,517
84.217 Trio_mcnair Post-Baccalaureate Achievement $276,721
12.300 Basic and Applied Scientific Research $170,651
93.213 Research and Training in Complementary and Integrative Health $166,991
27.011 Intergovernmental Personnel Act (ipa) Mobility Program $141,986
12.000 Serdp Treatment Train $140,863
20.200 Highway Research and Development Program $135,549
47.050 Geosciences $129,946
81.049 Office of Science Financial Assistance Program $126,925
47.075 Social, Behavioral, and Economic Sciences $119,135
47.076 Education and Human Resources $80,122
10.310 Agriculture and Food Research Initiative (afri) $70,312
12.420 Military Medical Research and Development $66,293
93.865 Child Health and Human Development Extramural Research $52,375
93.173 Research Related to Deafness and Communication Disorders $50,822
12.800 Air Force Defense Research Sciences Program $49,619
11.609 Measurement and Engineering Research and Standards $43,130
43.002 Aeronautics $27,830
12.910 Research and Technology Development $26,605
47.074 Biological Sciences $26,278
97.GSA_MIGRATION US Geological Survey - Natural Resource Stewardship $25,000
66.511 Office of Research and Development Consolidated Research/training/fellowships $17,249
47.049 Mathematical and Physical Sciences $17,248
81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/assistance $17,051
12.901 Mathematical Sciences Grants Program $13,158
12.000 Battelle $7,793
93.913 Grants to States for Operation of Offices of Rural Health $7,600
12.431 Basic Scientific Research $6,819
15.944 Natural Resource Stewardship $6,170
84.037 Federal Perkins Loan Cancellations $4,700
47.041 Engineering $4,219
40.070 University of Buffalo $4,156
20.215 Highway Training and Education $3,798
93.859 Biomedical Research and Research Training $2,616
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $344