County of Boulder

2024-001 Federal Agency: U.S. Department of the Treasury Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) Assistance Listing Number: 21.027 Federal Award Identification Number and Year: SLFRP1640 2021 Pass-Through Agency: Not Applicable Pass-Through Number(s): Not Applicable Award Period: March 3, 2021 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: 2 CFR 200.430(g)(1)(iii) requires personnel expenses to reasonably reflect the total activity for which the employee is compensated by the recipient, not exceeding 100 percent of compensated activities. Condition: For one out of 60 selected payroll transactions, we noted the employee had hours charged to the award in excess of actual hours worked with 224 hours charged to the program and only 168 worked. Questioned costs: $2,028. Context: The County identified this issue prior to the audit and attempted to correct it, however an incorrect project code was applied in the correction, so the amount was not removed as intended and resulted in costs charged to the program above what was incurred. Cause: An error was made in the process of allocating costs to this award and another error was made in the process of correcting the error. These errors were not identified in the County’s review process. Effect: The County charged $2,028 to the award that was not based on employee compensation. Repeat Finding: Not a repeat finding. Recommendation: We recommend the County improve the review process over allocating payroll costs to ensure that payroll costs charged were for the proper amounts. Views of responsible officials: There is no disagreement with the audit finding.