Finding Text
2022-004- Payroll Records Federal Agency: U.S. Department of Treasury Award Name: Coronavirus State and Local Fiscal Recovery Funds Program Year: 2022 Assistance Listing Number: 21.027 Compliance: Activities Allowed and Unallowed and Allowable Costs/Cost Principles Finding Type: Significant deficiency in internal controls over compliance and noncompliance Criteria: Management is responsible for maintaining adequate records for salaries charged to federal awards that accurately reflect the work performed. These records must also support the distribution of the employee?s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award or on a Federal award and non-Federal award. Condition: During compliance testing, it was noted that no adequate time and effort documentation was maintained for the employee being charged to the Federal award. Context: All 18 pay periods that were charged to the grants lacked adequate time and effort documentation. Cause of condition: The District was unaware of the requirement that salaries allocated to federal funds must have records that accurately reflect work performed. Effect of Condition: As a result of this condition, the District?s expenditures charged to the federal grant for salaries lacked adequate compliance documentation. Recommendation: It is recommended that the District maintain adequate records for salaries charged to federal awards, such as signed timesheets or semi-annual certificates if all salaries are charged to one grant.