Finding Text
FINDING 2022-001 DOCUMENT RETENTION SIGNIFICANT DEFICIENCY Federal Program: Child Care Development Block Grant Assistance Listing Number: 93.575 Criteria Per 7 CFR 200.334, ?Financial records, supporting documents, statistical records, and all other non- Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency or pass-through entity in the case of a subrecipient.? Condition Salary expenses were included in the administrative costs applied to the program. Employees were to be applied to the program based on percentages set in the grant budget. IAN did not maintain documentation to support the amounts for each employee applied to the program during the year. Total payroll costs were provided for these employees. It was determined that total salary expenses applied to the grant were within the budget allotment, and no questioned costs were identified. Cause IAN did not maintain documentation to show amounts applied to the program by individual employees. Effect We were unable to see how much of each employee?s salary was specifically applied to the grant. Recommendation We recommend IAN develop internal controls requiring the maintenance of documentation to support employee allocations to federal programs. Views of Responsible Officials The School?s Corrective Action Plan is included on page 25.