Audit 348495

Finding # 2024-002 Type: Material weakness Type: Material noncompliance over allowable costs A.L. Number: 21.027 Requirement: Personnel expenses charged to federal awards must be supported records that reflect the time worked charged to the award. Condition: The Organization charged personnel expenses based on approved budgeted amounts in the award agreement. Context: Certain personnel time was charged to the award without documentation to support time and effort spent on the program. Cause: Organization personal were not aware of the time and effort tracking requirements for federal awards. Effect: Personnel costs could be charged to program for 1) work that was not performed on the program and 2) expenses covered by another funding source. Questioned Costs: Unknown Recommendation: We recommend the Organization implement a time and effort system to track employee time. This is typically done in a timesheet format that tracks all time worked by an employee, including programmatic and administrative time. Management’s Response: Management agrees with the finding. Management will work with the human resources function and payroll department to implement a system of time and effort tracking.

Finding # 2024-003 Type: Significant deficiency over reporting. Condition/Context: Reports submitted to funding agencies did not have documented review and approval. Cause: There was a lapse in the standard process for documenting the reviews and approvals. Questioned Costs: None. Recommendation: The Organization should implement additional procedures to make sure reviews and approvals are documented before reports are submitted. Management’s Response: The Organization agrees with the auditor’s recommendation. At the time of this audit’s publishing, the Organization has implemented additional procedures and controls to document review and approval of reports.

Finding # 2024-002 Type: Material weakness Type: Material noncompliance over allowable costs A.L. Number: 21.027 Requirement: Personnel expenses charged to federal awards must be supported records that reflect the time worked charged to the award. Condition: The Organization charged personnel expenses based on approved budgeted amounts in the award agreement. Context: Certain personnel time was charged to the award without documentation to support time and effort spent on the program. Cause: Organization personal were not aware of the time and effort tracking requirements for federal awards. Effect: Personnel costs could be charged to program for 1) work that was not performed on the program and 2) expenses covered by another funding source. Questioned Costs: Unknown Recommendation: We recommend the Organization implement a time and effort system to track employee time. This is typically done in a timesheet format that tracks all time worked by an employee, including programmatic and administrative time. Management’s Response: Management agrees with the finding. Management will work with the human resources function and payroll department to implement a system of time and effort tracking.

Finding # 2024-003 Type: Significant deficiency over reporting. Condition/Context: Reports submitted to funding agencies did not have documented review and approval. Cause: There was a lapse in the standard process for documenting the reviews and approvals. Questioned Costs: None. Recommendation: The Organization should implement additional procedures to make sure reviews and approvals are documented before reports are submitted. Management’s Response: The Organization agrees with the auditor’s recommendation. At the time of this audit’s publishing, the Organization has implemented additional procedures and controls to document review and approval of reports.

Finding # 2024-002 Type: Material weakness Type: Material noncompliance over allowable costs A.L. Number: 21.027 Requirement: Personnel expenses charged to federal awards must be supported records that reflect the time worked charged to the award. Condition: The Organization charged personnel expenses based on approved budgeted amounts in the award agreement. Context: Certain personnel time was charged to the award without documentation to support time and effort spent on the program. Cause: Organization personal were not aware of the time and effort tracking requirements for federal awards. Effect: Personnel costs could be charged to program for 1) work that was not performed on the program and 2) expenses covered by another funding source. Questioned Costs: Unknown Recommendation: We recommend the Organization implement a time and effort system to track employee time. This is typically done in a timesheet format that tracks all time worked by an employee, including programmatic and administrative time. Management’s Response: Management agrees with the finding. Management will work with the human resources function and payroll department to implement a system of time and effort tracking.

Finding # 2024-003 Type: Significant deficiency over reporting. Condition/Context: Reports submitted to funding agencies did not have documented review and approval. Cause: There was a lapse in the standard process for documenting the reviews and approvals. Questioned Costs: None. Recommendation: The Organization should implement additional procedures to make sure reviews and approvals are documented before reports are submitted. Management’s Response: The Organization agrees with the auditor’s recommendation. At the time of this audit’s publishing, the Organization has implemented additional procedures and controls to document review and approval of reports.

Finding # 2024-002 Type: Material weakness Type: Material noncompliance over allowable costs A.L. Number: 21.027 Requirement: Personnel expenses charged to federal awards must be supported records that reflect the time worked charged to the award. Condition: The Organization charged personnel expenses based on approved budgeted amounts in the award agreement. Context: Certain personnel time was charged to the award without documentation to support time and effort spent on the program. Cause: Organization personal were not aware of the time and effort tracking requirements for federal awards. Effect: Personnel costs could be charged to program for 1) work that was not performed on the program and 2) expenses covered by another funding source. Questioned Costs: Unknown Recommendation: We recommend the Organization implement a time and effort system to track employee time. This is typically done in a timesheet format that tracks all time worked by an employee, including programmatic and administrative time. Management’s Response: Management agrees with the finding. Management will work with the human resources function and payroll department to implement a system of time and effort tracking.

Finding # 2024-003 Type: Significant deficiency over reporting. Condition/Context: Reports submitted to funding agencies did not have documented review and approval. Cause: There was a lapse in the standard process for documenting the reviews and approvals. Questioned Costs: None. Recommendation: The Organization should implement additional procedures to make sure reviews and approvals are documented before reports are submitted. Management’s Response: The Organization agrees with the auditor’s recommendation. At the time of this audit’s publishing, the Organization has implemented additional procedures and controls to document review and approval of reports.