Finding Text
Finding Number: 2023-001: Represents a material weakness in internal control over compliance with Maine Mathematics and Science Alliance’s major federal program.
Repeat Finding: Yes
Type of Finding: Material Weakness
Description: Internal Control over Payroll
Major Program:
NATIONAL SCIENCE FOUNDATION
Research Development Cluster (Direct)
AL# 47.076 – Education and Human Resources
AL# 47.070 – Computer and Information Science and Engineering
Questioned Costs: None
How the questioned costs were computed: N/A
Compliance Requirements: Activities Allowed or Unallowed and Allowable Costs, Cost Principles
NSF Award Numbers Effected: 1831427 (Grant term 10/1/18 - 6/30/23), 1933491 (Grant term 1/1/20 - 6/30/24), 2009613 (Grant term 5/15/20 - 4/30/24), 1657217 (Grant term 8/15/17 - 7/31/22), 2115229 (Grant term 9/1/21 - 8/31/25) and 2201674 (Grant term 8/1/22 - 7/31/26)
Condition: The internal controls over compliance for allowable activities and allowable costs are substantially the same for AL #47.076 and #47.070. During our audit, we noted the following:
Wages charged to the programs are inconsistently including or excluding taxable benefits
Pay rates noted in personnel files for several employees did not agree to the rates being paid
One employee's timesheet hours did not agree to the hours paid on the payroll register
Several instances in which payroll expenditures were incorrectly allocated to the programs. The employee's full wage for the pay period is being allocated rather than directly charging the program for the hours indicated on the timesheet as spent in the program and only allocating the other administrative or vacation time. The allocations were not based on time and effort records.
Criteria: 2 CFR 200.430(i) states that “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;”.
Cause: During fiscal year 2023, there was turnover in the personnel handling payroll.
Effect: Without ensuring the payroll allocation is supported by time and effort records, it is possible that grants could be overcharged, resulting in misstated financial statements and unallowable costs.
Context: The situation noted in the audit did not result in reportable questioned costs. The sample was not intended, and was not, a statistically valid sample.
Recommendation: We recommend that the database used in the allocation of payroll to the grants be compared to the time and effort records prior to posting into the general ledger and sending to Bangor Payroll for processing. We recommend that approved pay rates in personnel files be compared to what has been provided to Bangor Payroll and corrections be made as necessary, as soon as possible. This should be completed and documented by an appropriate individual.
View of responsible officials: Management agrees with the finding and has committed to a corrective action plan.