Audit 362157

Finding Type:Immaterial non compliance; significant deficiency in internal controls over compliance Program Names Emergency Solutions Grant (14.218) Criteria The Uniform Guidance requires the Organization to establish and maintain documentation supporting the allocation of individual employees that are partially charged to federal grant programs. Condition During audit testing, payroll charges to the program were sampled and payroll charges were identified which were not supported by the level of documentation required by Uniform guidance requirements. Cause The Organization indicated that time studies had been performed that supported the allocation of a portion of each individual's wages to the Emergency Solutions Grant program. However, documentation of the time study support was not maintained by the Organization. Effect Due to the lack of supporting documentation, it was not possible to determine if the payroll charges allocated to the program were allowable expenses for the grant. Questioned Costs The testing identified total wages and fringes allocations of $25,101 that were not supported by time study documentation. The total estimated questioned costs of $25,101 were 7.2% of total grant expenditures under the Emergency Solutions Grant program. RecommendatioN We recommend the Organization adopt policies and procedures to ensure that documentation supporting the allocation of wages expense to federal and state grant programs be maintained for a minimum of five years. View of Responsible Official The allocation of personal costs and benefits were well within the budget and acceptable amounts as established by the grant agreement and approved budget. Policies and procedures will be implemented to maintain more appropriate documentation supporting the allocation of personnel costs and related fringes to federal grant programs.

Finding Type:Immaterial non compliance; significant deficiency in internal controls over compliance Program Names Emergency Solutions Grant (14.218) Criteria The Uniform Guidance requires the Organization to establish and maintain documentation supporting the allocation of individual employees that are partially charged to federal grant programs. Condition During audit testing, payroll charges to the program were sampled and payroll charges were identified which were not supported by the level of documentation required by Uniform guidance requirements. Cause The Organization indicated that time studies had been performed that supported the allocation of a portion of each individual's wages to the Emergency Solutions Grant program. However, documentation of the time study support was not maintained by the Organization. Effect Due to the lack of supporting documentation, it was not possible to determine if the payroll charges allocated to the program were allowable expenses for the grant. Questioned Costs The testing identified total wages and fringes allocations of $25,101 that were not supported by time study documentation. The total estimated questioned costs of $25,101 were 7.2% of total grant expenditures under the Emergency Solutions Grant program. RecommendatioN We recommend the Organization adopt policies and procedures to ensure that documentation supporting the allocation of wages expense to federal and state grant programs be maintained for a minimum of five years. View of Responsible Official The allocation of personal costs and benefits were well within the budget and acceptable amounts as established by the grant agreement and approved budget. Policies and procedures will be implemented to maintain more appropriate documentation supporting the allocation of personnel costs and related fringes to federal grant programs.