Audit 299233

Condition: Payroll incurred prior to the effective date of the grant was charged to the program and requested for reimbursement. Criteria: Per the terms of the grant agreement, AACA is authorized to commence services and incur costs as of the beginning effective date of the grant. Cause: Payroll was requested for reimbursement based on the date it was paid, rather than the period it was incurred. Effect: The grant was billed for a non-allowable activity and a non- allowable cost, which may be disallowed. Context: A sample of 20 payroll expenditures charged to the grant totaling $166,000 were selected from a population totaling $175,472. The test found 1 expenditure that was not in compliance resulting in questioned costs of $8,300. Our sample was a statistically valid sample. Recommendation: Closer attention should be paid to the incurred date versus the paid date to ensure only activities and costs incurred in the grant period are charged to the program and requested for reimbursement. Views of Responsible Officials and Planned Corrective Actions: AACA agrees with the finding and the recommendation will be implemented.

Condition: Per employee time sheets, the payroll allocated to this program for the pay periods selected, was less than the payroll charged to the program and requested for reimbursement. Criteria: Federal funds should be expended only for allowable activities and allowable costs. Cause: Employee time sheets are not being completed correctly or adjusted upon review to reflect the accurate department / program allocation of hours worked. Effect: There was no documentation to support the amounts charged to this department / program and requested for reimbursement under this grant. The grant was billed for a non-allowable activity and a non-allowable cost, which could be disallowed. Context: A sub-sample of 19 payroll expenditures charged to the grant totaling $30,931 were selected from a population totaling $175,472. The test found 13 expenditures that were not in compliance resulting in questioned costs of $14,353. Our sample was a statistically valid sample. Recommendation: Closer attention should be paid when summarizing and reviewing employee time sheets to ensure they accurately reflect the allocation of hours worked. Adjustments should be made as needed and the employee should be notified of any changes. In addition, grants should only be billed for actual payroll allocated as documented on the time sheet. This will ensure the proper charging of payroll to departments / programs and reduce the risk of billing for a non-allowable activity or a non-allowable cost. Views of Responsible Officials and Planned Corrective Actions: AACA agrees with the finding and the recommendations will be implemented.

Grant / Contract Requests for Reimbursement Condition: Payroll incurred prior to the effective date of the grant was charged to the program and requested for reimbursement. Criteria: Internal controls should be in place to ensure only costs incurred in the grant period be requested for reimbursement. Cause: Controls were not implemented. Effect: Amounts not allowed per grant terms were improperly requested for reimbursement. Recommendation: Closer attention should be paid when preparing requests for reimbursement to ensure only allowable expenses are being included in the request. In addition, expenses should always be posted as of the date incurred, not as of the date paid. This will ensure expenses are posted to the proper period and will assist with the preparation of the requests for reimbursement. Views of Responsible Officials and Planned Corrective Actions: AACA agrees with the finding and the recommendation will be implemented.

Employee Time Sheets Condition: Employee time sheets do not accurately reflect the allocation of their hours among departments / programs. Criteria: Time sheets are accurately prepared by the employee or adjusted upon management's review. Cause: Controls were not implemented. Effect: There is no documentation to support the amounts charged to a department / program and requested for reimbursement under a grant. Recommendation: Closer attention should be paid when summarizing and reviewing employee time sheets to ensure it accurately reflects the allocation of hours worked. Adjustments should be made as needed and the employee should be notified of any changes. This will ensure the proper charging of payroll to departments / programs and requested for reimbursement is accurate and properly documented. Views of Responsible Officials and Planned Corrective Actions: AACA agrees with the finding and the recommendation will be implemented.

Condition: Payroll incurred prior to the effective date of the grant was charged to the program and requested for reimbursement. Criteria: Per the terms of the grant agreement, AACA is authorized to commence services and incur costs as of the beginning effective date of the grant. Cause: Payroll was requested for reimbursement based on the date it was paid, rather than the period it was incurred. Effect: The grant was billed for a non-allowable activity and a non- allowable cost, which may be disallowed. Context: A sample of 20 payroll expenditures charged to the grant totaling $166,000 were selected from a population totaling $175,472. The test found 1 expenditure that was not in compliance resulting in questioned costs of $8,300. Our sample was a statistically valid sample. Recommendation: Closer attention should be paid to the incurred date versus the paid date to ensure only activities and costs incurred in the grant period are charged to the program and requested for reimbursement. Views of Responsible Officials and Planned Corrective Actions: AACA agrees with the finding and the recommendation will be implemented.

Condition: Per employee time sheets, the payroll allocated to this program for the pay periods selected, was less than the payroll charged to the program and requested for reimbursement. Criteria: Federal funds should be expended only for allowable activities and allowable costs. Cause: Employee time sheets are not being completed correctly or adjusted upon review to reflect the accurate department / program allocation of hours worked. Effect: There was no documentation to support the amounts charged to this department / program and requested for reimbursement under this grant. The grant was billed for a non-allowable activity and a non-allowable cost, which could be disallowed. Context: A sub-sample of 19 payroll expenditures charged to the grant totaling $30,931 were selected from a population totaling $175,472. The test found 13 expenditures that were not in compliance resulting in questioned costs of $14,353. Our sample was a statistically valid sample. Recommendation: Closer attention should be paid when summarizing and reviewing employee time sheets to ensure they accurately reflect the allocation of hours worked. Adjustments should be made as needed and the employee should be notified of any changes. In addition, grants should only be billed for actual payroll allocated as documented on the time sheet. This will ensure the proper charging of payroll to departments / programs and reduce the risk of billing for a non-allowable activity or a non-allowable cost. Views of Responsible Officials and Planned Corrective Actions: AACA agrees with the finding and the recommendations will be implemented.

Grant / Contract Requests for Reimbursement Condition: Payroll incurred prior to the effective date of the grant was charged to the program and requested for reimbursement. Criteria: Internal controls should be in place to ensure only costs incurred in the grant period be requested for reimbursement. Cause: Controls were not implemented. Effect: Amounts not allowed per grant terms were improperly requested for reimbursement. Recommendation: Closer attention should be paid when preparing requests for reimbursement to ensure only allowable expenses are being included in the request. In addition, expenses should always be posted as of the date incurred, not as of the date paid. This will ensure expenses are posted to the proper period and will assist with the preparation of the requests for reimbursement. Views of Responsible Officials and Planned Corrective Actions: AACA agrees with the finding and the recommendation will be implemented.

Employee Time Sheets Condition: Employee time sheets do not accurately reflect the allocation of their hours among departments / programs. Criteria: Time sheets are accurately prepared by the employee or adjusted upon management's review. Cause: Controls were not implemented. Effect: There is no documentation to support the amounts charged to a department / program and requested for reimbursement under a grant. Recommendation: Closer attention should be paid when summarizing and reviewing employee time sheets to ensure it accurately reflects the allocation of hours worked. Adjustments should be made as needed and the employee should be notified of any changes. This will ensure the proper charging of payroll to departments / programs and requested for reimbursement is accurate and properly documented. Views of Responsible Officials and Planned Corrective Actions: AACA agrees with the finding and the recommendation will be implemented.