Finding Text
Assistance Listing Number: 84.010 Federal Agency: U.S. Department of Education Pass-Through Entity: California Department of Education Criteria or Specific Requirements Per Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430(i)(1), 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. Condition Through review of wages charged to the federal programs, it was noted that employee timecards are not consistently reviewed and approved by supervisors and department heads. Questioned Costs This finding represents a significant deficiency in internal control over federal compliance. However, there were no questioned costs associated with this finding as we did not identify any unallowable expenditures as a result of the finding. Context A significant amount of the federal expenditures related to the program are derived from payroll costs. While the wages appear to be reasonable and necessary for the program objectives, the District did not provide documentation that indicates review and approval of the charged earnings. Effect The District has not complied with the requirements identified in Title 2, Code of Federal Regulations, Part 200, Subpart E, Section 200.430 (i)(1). Cause The identified condition appears to have materialized due to ineffective monitoring of timecard approval statuses within District?s automated payroll processing system related to the program. Repeat Finding No. Recommendation The District should monitor the status of timecard approvals within the automated payroll system and procedures should be implemented to ensure that all timecards have been reviewed and approved prior to processing payroll.