Audit 302493

Finding 2022-002 - Allowable Expenditures: Time and effort reporting (Material Weakness) Identification of the Federal Program: 21.023 - COVID-19 - Emergency Rental Assistance Program Criteria: Charges to government funded contracts were based on budgeted amounts rather than actual time and effort reporting for employees that had their time allocated. The distribution of the salaries and wages to awards must be supported by personnel activity reports, such as timesheets. Such reports reflecting the distribution of activity of each employee must be maintained for all staff members whose compensation is charged, in whole or in part to government funded contracts. Condition: For 56 of the 60 samples tested, we noted that actual hours per approved time and effort reports did not agree to time and effort amounts vouchered for the program. Cause: Procedures and internal controls associated with actual time and effort related to government contracts were not appropriately reconciled to voucher requests. Effect: Payroll expenses charged to the program were not consistent with approved time sheets. Questioned costs: Recommend indicating net costs were $1,589 Repeat finding: No Recommendation: We recommend that management implement policies and procedures to ensure that time and effort reports are prepared and approved by appropriate individuals to comply with applicable cost principles, and internal control policies be implemented and documented to ensure adherence to the cost reimbursement request. Views of Responsible Officials: Management of the Organization agrees with the finding. The Organization plans to enhance its controls over grant reporting and actual payroll cost reconciliation to the voucher.

Finding 2022-002 - Allowable Expenditures: Time and effort reporting (Material Weakness) Identification of the Federal Program: 21.023 - COVID-19 - Emergency Rental Assistance Program Criteria: Charges to government funded contracts were based on budgeted amounts rather than actual time and effort reporting for employees that had their time allocated. The distribution of the salaries and wages to awards must be supported by personnel activity reports, such as timesheets. Such reports reflecting the distribution of activity of each employee must be maintained for all staff members whose compensation is charged, in whole or in part to government funded contracts. Condition: For 56 of the 60 samples tested, we noted that actual hours per approved time and effort reports did not agree to time and effort amounts vouchered for the program. Cause: Procedures and internal controls associated with actual time and effort related to government contracts were not appropriately reconciled to voucher requests. Effect: Payroll expenses charged to the program were not consistent with approved time sheets. Questioned costs: Recommend indicating net costs were $1,589 Repeat finding: No Recommendation: We recommend that management implement policies and procedures to ensure that time and effort reports are prepared and approved by appropriate individuals to comply with applicable cost principles, and internal control policies be implemented and documented to ensure adherence to the cost reimbursement request. Views of Responsible Officials: Management of the Organization agrees with the finding. The Organization plans to enhance its controls over grant reporting and actual payroll cost reconciliation to the voucher.