Finding 942996 (2022-004)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2024-02-08
Audit: 289401
Organization: City of Warwick, Rhode Island (RI)

AI Summary

  • Core Issue: Payroll costs charged to the grant lacked proper approval documentation.
  • Impacted Requirements: Compliance with 2 CFR § 200.430 on allowable costs and internal control standards.
  • Recommended Follow-Up: Enhance internal controls to ensure payroll charges are documented and approved.

Finding Text

2022-004 Federal Agency: U.S. Department of Education Federal Programs: Education Stabilization Fund Assistance Listing Number: 84.425U Pass-Through Agency: Rhode Island Department of Elementary and Secondary Education Pass-Through Number: 4872-505020-201 Award Period: July 1, 2021 – June 30, 2022 Compliance Requirement: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: Per 2 CFR § 200.430 (a), costs of compensation are allowable to the extent that they satisfy the specific requirements of this part, and that the total compensation for individual employees: (1) Is reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non- Federal activities; (2) Follows an appointment made in accordance with a non-Federal entity's laws or rules or written policies and meets the requirements of Federal statute, where applicable; and (3) Is determined and supported as provided in paragraph (i) of this section, Standards for Documentation of Personnel Expenses, when applicable. Per 2 CFR § 200.430 (i), 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,  Be incorporated into the official records of the non-Federal entity,  Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities,  Encompass both federally assisted, and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy,  Comply with the established accounting policies and practices of the non-Federal entity,  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. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)." Condition: Payroll costs charged to the grant showed no evidence of approval. Questioned Costs: Below the reportable limit. Context: For 16 out of 60 payroll costs charged to the grant, time sheets or other documentation was not available to support evidence of approval for time worked. Cause: The City's procedures were not sufficient to ensure that payroll charges were appropriately approved and documented. Effect: Payroll costs charged to the grant may not be allowable. Recommendation: We recommend the City review and enhance internal controls and procedures to ensure that approval for payroll charges is documented and maintained. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 366549 2022-003
    Significant Deficiency
  • 366550 2022-003
    Significant Deficiency
  • 366551 2022-003
    Significant Deficiency
  • 366552 2022-003
    Significant Deficiency
  • 366553 2022-004
    Significant Deficiency Repeat
  • 366554 2022-004
    Significant Deficiency Repeat
  • 366555 2022-004
    Significant Deficiency Repeat
  • 366556 2022-004
    Significant Deficiency Repeat
  • 942991 2022-003
    Significant Deficiency
  • 942992 2022-003
    Significant Deficiency
  • 942993 2022-003
    Significant Deficiency
  • 942994 2022-003
    Significant Deficiency
  • 942995 2022-004
    Significant Deficiency Repeat
  • 942997 2022-004
    Significant Deficiency Repeat
  • 942998 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $7.18M
10.555 National School Lunch Program $3.16M
84.027 Special Education_grants to States $2.84M
84.010 Title I Grants to Local Educational Agencies $1.79M
10.553 School Breakfast Program $1.06M
14.218 Community Development Block Grants/entitlement Grants $806,579
84.371 Striving Readers $485,663
84.367 Improving Teacher Quality State Grants $465,496
32.009 Emergency Connectivity Fund Program $456,752
84.048 Career and Technical Education -- Basic Grants to States $315,529
84.424 Student Support and Academic Enrichment Program $306,206
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $292,485
97.044 Assistance to Firefighters Grant $186,550
20.616 National Priority Safety Programs $156,821
84.173 Special Education_preschool Grants $74,837
97.067 Homeland Security Grant Program $73,745
10.582 Fresh Fruit and Vegetable Program $61,050
16.922 Equitable Sharing Program $49,315
84.425 Education Stabilization Fund $43,275
16.U01 Cbp/ice Grant $39,807
10.558 Child and Adult Care Food Program $32,658
14.268 Rural Housing Stability Assistance Program $30,788
10.559 Summer Food Service Program for Children $25,380
84.365 English Language Acquisition State Grants $24,677
84.196 Education for Homeless Children and Youth $17,920
16.738 Edward Byrne Memorial Justice Assistance Grant Program $15,649
16.U03 FBI-Cetf $12,856
20.600 State and Community Highway Safety $11,505
16.U02 Dea Reimbursement $11,219
16.034 Coronavirus Emergency Supplemental Funding Program $11,219