Audit 368543

Federal program information: Funding agency: U.S. Department of Treasury Federal program: Native American CDFI Assistance Program Assistance listing number: 21.012 Award year and number: 211NA056263 – 2021 and 221NA059914 – 2022 Funding agency: U.S. Department of Treasury Federal program: CDFI Equitable Recovery Program Assistance listing number: 21.033 Award year and number: 22ERP061731 – 2022 Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of allowable costs and requires proper time and effort for payroll. Condition: The Organization allocated payroll to the programs without proof of time and effort and no documentation of review and approval of time and effort. Questioned Costs: Unknown. Cause: Policies and procedures were not in place to properly document, record, approve, and allocate payroll to programs. Effect: Payroll that may have been for nonprogram-related activity may have been charged to programs. Repeat Finding: Yes. Recommendation: We recommend that the Organization adds documentation as part of their timekeeping process to specifically document when time charged is allocated to specific programs. Management’s Response: Management concurs with the finding and intends to add additional detail to timesheets completed by employees to properly document payroll allocated to specific programs.