FAC Explorer

Audit 291860

FY End
2023-06-30
Total Expended
$943,076
Findings
10
Programs
8
Organization: Association House of Chicago (IL)
Year: 2023 Accepted: 2024-02-23
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
370250 2023-002 Significant Deficiency - L
370251 2023-003 Significant Deficiency - AB
370252 2023-004 Significant Deficiency - L
370253 2023-002 Significant Deficiency - L
370254 2023-003 Significant Deficiency - AB
946692 2023-002 Significant Deficiency - L
946693 2023-003 Significant Deficiency - AB
946694 2023-004 Significant Deficiency - L
946695 2023-002 Significant Deficiency - L
946696 2023-003 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
17.258 Wia Adult Program $234,028 Yes 3
93.958 Block Grants for Community Mental Health Services $192,304 Yes 2
14.218 Community Development Block Grants/entitlement Grants $148,684 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $85,000 - 0
97.024 Emergency Food and Shelter National Board Program $59,590 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $46,958 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $33,750 - 0
94.006 Americorps $23,725 - 0

Contacts

Name Title Type
U43SP5TQJHD9 Juan Carlos Linares Auditee
7737727170 Thure Ross Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of the Agency under programs of the federal government for the year ended June 30, 2023. The information in this SEFA is presented in accordance with the requirements of 2 CFR Part 900, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the SEFA presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Agency. Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of the Agency under programs of the federal government for the year ended June 30, 2023. The information in this SEFA is presented in accordance with the requirements of 2 CFR Part 900, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the SEFA presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Agency.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of the Agency under programs of the federal government for the year ended June 30, 2023. The information in this SEFA is presented in accordance with the requirements of 2 CFR Part 900, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the SEFA presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Agency. Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Agency has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: OTHER MATTERS Accounting Policies: The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of the Agency under programs of the federal government for the year ended June 30, 2023. The information in this SEFA is presented in accordance with the requirements of 2 CFR Part 900, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As the SEFA presents only a selected portion of the operations of the Agency, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Agency. Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Agency has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Amount of Noncash Assistance - None Amount of Insurance - None Amount of Loans - None Amount of Loan Guarantees - None

Finding Details

Finding 2023-002
2023 – 002: Preparation of Schedule of Expenditures of Federal Awards Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program Assistance Listing Numbers: 93.958 and 17.258 Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135 Award Periods: July 1, 2022 through June 30, 2023; October 1, 2021 through September 30, 2022; October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Agency must provide the Schedule of Expenditures of Federal Awards. The schedule must be complete and accurate to provide for the basis of testing by the auditors as well as for accurate financial reporting to primary and secondary funders. Condition: During the audit, 1) noted $103,547 in payments originally classified as a federal award until auditors' review of agreement identified that amount is not federal funding (ALN 93.958). 2) Noted $25,400 was omitted from the SEFA for grant as formula calculating total expenditures excluded an amount. A change to the SEFA was required to adjust the amounts reflected as federal awards. Questioned Costs: None Context: The initial SEFA provided overstated federal awards by $103,547 (ALN 93.958) passed-through the Illinois Department of Human Services and understated federal awards by $25,400 (ALN 17.258) passed-through the Chicago Cook Workforce Partnership. Cause: Lack of review of final calculations and passed through grant agreement. Effect: Amounts inaccurately reflected on the SEFA. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the Agency establish controls to evaluate grant agreements to capture funds identified as federal accurately and perform review of final SEFA to avoid any calculation related errors. Views of Responsible Officials: There is no disagreement with this finding.
Finding 2023-003
2023 – 003: Allocation and Documentation of Payroll Costs Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program Assistance Listing Numbers: 93.958 and 17.258 Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135 Award Period: July 1, 2022 through June 30, 2023; October 1, 2021 through September 30, 2022; October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Guidance section 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity and (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities. Furthermore, subsection (viii) indicates: Budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that:(A) The system for establishing the estimates produces reasonable approximations of the activity actually performed;(B) Significant changes in the corresponding work activity are identified and entered into the records in a timely manner and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal awards based on budget estimates. Condition: The Agency is allocating payroll costs to grants based upon budgeted amounts/percentages submitted to the funding agency and does not currently have a system for ensuring that the estimates used produce reasonable approximations of the activity actually performed. Questioned Costs: None Context: This condition occurred in all 59 transactions selected for testing and represented 16 different employees. Cause: Procedures for the allocation of employee time in full compliance with the Uniform Guidance have not yet been fully implemented. Effect: Inaccurate payroll costs may be charged to federal programs if the Agency does not have procedures in place to monitor and record employee time devoted to federal programs. Repeat Finding: This finding is not a repeat finding. Recommendation: Management should develop a process whereby payroll costs allocated to federal grants; are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated, reasonably reflect the total activity for which the employee is compensated, and support the distribution of the employee’s wages among specific activities or cost objectives if the employee woks on more than one federally funded program. Views of Responsible Officials: There is no disagreement with this finding.
Finding 2023-004
2023 – 004: Reporting Federal Agency: U.S. Department of Labor Federal Program Name: WIOA Adult Program Assistance Listing Number: 17.258 Pass-Through Agency: Chicago Cook Workforce Partnership Pass-Through Number: 2022-2135 Award Period: October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The internal control system should include policies and procedures to ensure that required reports have documented review and approval. Condition: In testing required reports, we noted a monthly expenditure report did not have documented review and approval. Questioned Costs: None Context: The Agency is required to report monthly expenditures to the funder. We noted one of three instances selected for testing did not have documented review and approval. Cause: The Agency did not follow established policies and procedures over the review and approval of the monthly expenditure reports. Effect: Monthly expenditure reports have a higher risk of error if review in accordance with established policies and procedures is not performed. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend management update their policies and procedures to ensure all monthly expenditure reports have documented review and approval. Views of Responsible Officials: There is no disagreement with this finding.
Finding 2023-002
2023 – 002: Preparation of Schedule of Expenditures of Federal Awards Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program Assistance Listing Numbers: 93.958 and 17.258 Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135 Award Periods: July 1, 2022 through June 30, 2023; October 1, 2021 through September 30, 2022; October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Agency must provide the Schedule of Expenditures of Federal Awards. The schedule must be complete and accurate to provide for the basis of testing by the auditors as well as for accurate financial reporting to primary and secondary funders. Condition: During the audit, 1) noted $103,547 in payments originally classified as a federal award until auditors' review of agreement identified that amount is not federal funding (ALN 93.958). 2) Noted $25,400 was omitted from the SEFA for grant as formula calculating total expenditures excluded an amount. A change to the SEFA was required to adjust the amounts reflected as federal awards. Questioned Costs: None Context: The initial SEFA provided overstated federal awards by $103,547 (ALN 93.958) passed-through the Illinois Department of Human Services and understated federal awards by $25,400 (ALN 17.258) passed-through the Chicago Cook Workforce Partnership. Cause: Lack of review of final calculations and passed through grant agreement. Effect: Amounts inaccurately reflected on the SEFA. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the Agency establish controls to evaluate grant agreements to capture funds identified as federal accurately and perform review of final SEFA to avoid any calculation related errors. Views of Responsible Officials: There is no disagreement with this finding.
Finding 2023-003
2023 – 003: Allocation and Documentation of Payroll Costs Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program Assistance Listing Numbers: 93.958 and 17.258 Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135 Award Period: July 1, 2022 through June 30, 2023; October 1, 2021 through September 30, 2022; October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Guidance section 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity and (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities. Furthermore, subsection (viii) indicates: Budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that:(A) The system for establishing the estimates produces reasonable approximations of the activity actually performed;(B) Significant changes in the corresponding work activity are identified and entered into the records in a timely manner and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal awards based on budget estimates. Condition: The Agency is allocating payroll costs to grants based upon budgeted amounts/percentages submitted to the funding agency and does not currently have a system for ensuring that the estimates used produce reasonable approximations of the activity actually performed. Questioned Costs: None Context: This condition occurred in all 59 transactions selected for testing and represented 16 different employees. Cause: Procedures for the allocation of employee time in full compliance with the Uniform Guidance have not yet been fully implemented. Effect: Inaccurate payroll costs may be charged to federal programs if the Agency does not have procedures in place to monitor and record employee time devoted to federal programs. Repeat Finding: This finding is not a repeat finding. Recommendation: Management should develop a process whereby payroll costs allocated to federal grants; are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated, reasonably reflect the total activity for which the employee is compensated, and support the distribution of the employee’s wages among specific activities or cost objectives if the employee woks on more than one federally funded program. Views of Responsible Officials: There is no disagreement with this finding.
Finding 2023-002
2023 – 002: Preparation of Schedule of Expenditures of Federal Awards Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program Assistance Listing Numbers: 93.958 and 17.258 Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135 Award Periods: July 1, 2022 through June 30, 2023; October 1, 2021 through September 30, 2022; October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Agency must provide the Schedule of Expenditures of Federal Awards. The schedule must be complete and accurate to provide for the basis of testing by the auditors as well as for accurate financial reporting to primary and secondary funders. Condition: During the audit, 1) noted $103,547 in payments originally classified as a federal award until auditors' review of agreement identified that amount is not federal funding (ALN 93.958). 2) Noted $25,400 was omitted from the SEFA for grant as formula calculating total expenditures excluded an amount. A change to the SEFA was required to adjust the amounts reflected as federal awards. Questioned Costs: None Context: The initial SEFA provided overstated federal awards by $103,547 (ALN 93.958) passed-through the Illinois Department of Human Services and understated federal awards by $25,400 (ALN 17.258) passed-through the Chicago Cook Workforce Partnership. Cause: Lack of review of final calculations and passed through grant agreement. Effect: Amounts inaccurately reflected on the SEFA. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the Agency establish controls to evaluate grant agreements to capture funds identified as federal accurately and perform review of final SEFA to avoid any calculation related errors. Views of Responsible Officials: There is no disagreement with this finding.
Finding 2023-003
2023 – 003: Allocation and Documentation of Payroll Costs Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program Assistance Listing Numbers: 93.958 and 17.258 Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135 Award Period: July 1, 2022 through June 30, 2023; October 1, 2021 through September 30, 2022; October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Guidance section 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity and (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities. Furthermore, subsection (viii) indicates: Budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that:(A) The system for establishing the estimates produces reasonable approximations of the activity actually performed;(B) Significant changes in the corresponding work activity are identified and entered into the records in a timely manner and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal awards based on budget estimates. Condition: The Agency is allocating payroll costs to grants based upon budgeted amounts/percentages submitted to the funding agency and does not currently have a system for ensuring that the estimates used produce reasonable approximations of the activity actually performed. Questioned Costs: None Context: This condition occurred in all 59 transactions selected for testing and represented 16 different employees. Cause: Procedures for the allocation of employee time in full compliance with the Uniform Guidance have not yet been fully implemented. Effect: Inaccurate payroll costs may be charged to federal programs if the Agency does not have procedures in place to monitor and record employee time devoted to federal programs. Repeat Finding: This finding is not a repeat finding. Recommendation: Management should develop a process whereby payroll costs allocated to federal grants; are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated, reasonably reflect the total activity for which the employee is compensated, and support the distribution of the employee’s wages among specific activities or cost objectives if the employee woks on more than one federally funded program. Views of Responsible Officials: There is no disagreement with this finding.
Finding 2023-004
2023 – 004: Reporting Federal Agency: U.S. Department of Labor Federal Program Name: WIOA Adult Program Assistance Listing Number: 17.258 Pass-Through Agency: Chicago Cook Workforce Partnership Pass-Through Number: 2022-2135 Award Period: October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The internal control system should include policies and procedures to ensure that required reports have documented review and approval. Condition: In testing required reports, we noted a monthly expenditure report did not have documented review and approval. Questioned Costs: None Context: The Agency is required to report monthly expenditures to the funder. We noted one of three instances selected for testing did not have documented review and approval. Cause: The Agency did not follow established policies and procedures over the review and approval of the monthly expenditure reports. Effect: Monthly expenditure reports have a higher risk of error if review in accordance with established policies and procedures is not performed. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend management update their policies and procedures to ensure all monthly expenditure reports have documented review and approval. Views of Responsible Officials: There is no disagreement with this finding.
Finding 2023-002
2023 – 002: Preparation of Schedule of Expenditures of Federal Awards Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program Assistance Listing Numbers: 93.958 and 17.258 Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135 Award Periods: July 1, 2022 through June 30, 2023; October 1, 2021 through September 30, 2022; October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Agency must provide the Schedule of Expenditures of Federal Awards. The schedule must be complete and accurate to provide for the basis of testing by the auditors as well as for accurate financial reporting to primary and secondary funders. Condition: During the audit, 1) noted $103,547 in payments originally classified as a federal award until auditors' review of agreement identified that amount is not federal funding (ALN 93.958). 2) Noted $25,400 was omitted from the SEFA for grant as formula calculating total expenditures excluded an amount. A change to the SEFA was required to adjust the amounts reflected as federal awards. Questioned Costs: None Context: The initial SEFA provided overstated federal awards by $103,547 (ALN 93.958) passed-through the Illinois Department of Human Services and understated federal awards by $25,400 (ALN 17.258) passed-through the Chicago Cook Workforce Partnership. Cause: Lack of review of final calculations and passed through grant agreement. Effect: Amounts inaccurately reflected on the SEFA. Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend the Agency establish controls to evaluate grant agreements to capture funds identified as federal accurately and perform review of final SEFA to avoid any calculation related errors. Views of Responsible Officials: There is no disagreement with this finding.
Finding 2023-003
2023 – 003: Allocation and Documentation of Payroll Costs Federal Agencies: U.S. Department of Health and Human Services and U.S. Department of Labor Federal Program Names: Block Grants for Community Mental Health Services and WIOA Adult Program Assistance Listing Numbers: 93.958 and 17.258 Pass-Through Agencies: Illinois Department of Human Services and Chicago Cook Workforce Partnership Pass-Through Numbers: 45CBB00060; 2021-2135 and 2022-2135 Award Period: July 1, 2022 through June 30, 2023; October 1, 2021 through September 30, 2022; October 1, 2022 through September 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Uniform Guidance section 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity and (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities. Furthermore, subsection (viii) indicates: Budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that:(A) The system for establishing the estimates produces reasonable approximations of the activity actually performed;(B) Significant changes in the corresponding work activity are identified and entered into the records in a timely manner and (C) The non-Federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal awards based on budget estimates. Condition: The Agency is allocating payroll costs to grants based upon budgeted amounts/percentages submitted to the funding agency and does not currently have a system for ensuring that the estimates used produce reasonable approximations of the activity actually performed. Questioned Costs: None Context: This condition occurred in all 59 transactions selected for testing and represented 16 different employees. Cause: Procedures for the allocation of employee time in full compliance with the Uniform Guidance have not yet been fully implemented. Effect: Inaccurate payroll costs may be charged to federal programs if the Agency does not have procedures in place to monitor and record employee time devoted to federal programs. Repeat Finding: This finding is not a repeat finding. Recommendation: Management should develop a process whereby payroll costs allocated to federal grants; are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated, reasonably reflect the total activity for which the employee is compensated, and support the distribution of the employee’s wages among specific activities or cost objectives if the employee woks on more than one federally funded program. Views of Responsible Officials: There is no disagreement with this finding.