Finding Text
Criteria: Management is responsible for only charging allowable costs to the federal award. In accordance with allowable costs requirements for cost-reimbursed contracts, the Organization is required to request reimbursement for actual, reasonable, and necessary costs based upon the grant budget.
Condition: In fiscal year 2023, the Organization submitted monthly invoices for payroll expenses related to the grant. These payroll expenses were calculated based on budgeted pay for the fiscal year and not what employees were actually paid. This caused the Organization to be reimbursed more or less for certain employees than the employees were paid.
Cause: Payroll is not handled by Cumberland Pediatric Foundation and thus salary amounts for all employees are not easily attainable on a regular basis.
Recommendation: We recommend that management obtain documentation on each employee’s pay to use in the calculation of monthly reimbursement requests for the grant. Additionally, we recommend management distribute and maintain documentation on each employee’s pay rate and any pay changes that occur.
Views of responsible officers: Management acknowledges this finding and will address remediation in the accompanying management’s corrective action plan.