Finding Text
Finding 2023-001 – ALLOWABLE COSTS/COST PRINCIPLES – PAYROLL DOCUMENTATION
Type: Significant Deficiency in Internal Control / Noncompliance
Program: Education Stabilization Fund (ALN 84.425) – COVID 19 - all project numbers
Condition: The District was unable to provide a semi-annual time certification, or equivalent documentation, for 8 of the 8 payroll transactions tested.
Criteria: 2 CFR 200.430(i)(1)(viii) states that entities must, “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; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity.”
Cause: Management oversight.
Effect: As a result of this condition, the District does not have required payroll support for transactions tested which were charged to the grant.
Questioned Costs: The total charges included in our sample that were not supported by allowable documentation amounted to $59,925.
Recommendation: We recommend that the District review their policies and procedures regarding the documentation requirements of the grant and make the necessary changes, if needed, to assure that semi-annual time certifications (or equivalent documentation) are obtained.
Management’s Resp: We are in agreement with this finding.