Finding Text
Federal Program
Education Stabilization Fund (AL 84.425)
Activities Allowed or Unallowed & Allowable Costs/Cost Principles
Criteria
The “Basic Guidelines” section of 2 CFR Part 230, Attachment B, Paragraph 8 requires charges
to grants for salaries and wages to be based on documented payrolls approved by the District.
Condition
One employee was overcharged to the grant and the District was unable to provide
documentation for a few stipend payments.
Questioned Costs
Immaterial
Context
A sample of 18 employees were selected for testing. For one employee tested, noted that the
amount charged to the grant for one pay period was higher than the employee’s total payroll for
that pay period. There was a negative offset in another payroll account that wasn’t adjusted to
the grant. Also, noted there were 3 employees that received stipend payments for a lesser
amount than the maximum per employee of $1,000. The District was unable to provide
documentation for the calculation of this lesser amount.
Cause
Staff turnover at the District
Effect
The District overcharged the grant for one employee and a few stipend payments charged to the
grants did not have proper supporting documentation.
Repeat Finding
No
Recommendation
The District should review their payroll procedures to ensure the correct amounts are charged to
grants and all supporting documentation is maintained.
Views of Responsible Officials
The District agrees with the recommendation and will review its payroll procedures.