Finding Text
Finding 2022-001: Payroll Allocations Federal Program: ALN 19.701 Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) Part 200, paragraph 430 ?Compensation ? personal services? requires that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed, and that these records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, these records must comply with established accounting policies and practices of the non-Federal entity. Condition: As part of our audit procedures around payroll, we noted instances of payroll allocations to programs which did not accurately represent the time worked and/or salary rate of the employee. While misallocations were not significant in their amounts, the errors themselves suggest the need for more detailed review of the payroll allocation approval and entry process. Cause: The review of the payroll allocation entry and process was not sufficient to catch the errors. Effect or Potential Effect: The Global Center could inadvertently mischarge salaries and wages to its various programs. Recommendation: We recommend that the finance department perform a more detailed review of the monthly program allocations, including the pay rates used for the allocation to ensure complete and accurate entry of payroll allocations. Questioned Costs: Undetermined Identification as a Repeat Finding: Not applicable