Audit 388427

Assistance Listing Number: 93.558 Criteria: The Organization must comply with the cost standards set out at the OPM Cost Accounting Standards. Specifically, allowable costs must be adequately supported by invoices, cancelled checks, wire transfers, or other forms of documentation evidencing a disbursement and substantiating that a cost was incurred by the Organization during the period of the award. Condition: A sample of 40 expenses was selected for testing. During the testing, we identified 1 expense that did not have sufficient documentation to support the amount charged to the grant and another expense that was charged to the incorrect grant. Questioned Costs: Unknown Context: In one case the Organization failed to provide adequate documentation to support amounts charged to a grant and in another, the incorrect grant was charged for a grant expense. Cause: Underlying support as required by the State of Connecticut Single Audit Act was not properly maintained and the wrong grant was charged for an expense. Effect: The effect is that costs charged to the grant could potentially be incorrectly stated and/or misallocated as of year-end. Repeat Finding: No. Recommendation: We recommend management enhance internal policies and procedures to ensure underlying supporting documentation is fully retained going forward and the proper grant is charged. Views of Responsible Officials: Management concurs with the finding. Refer to the separate corrective action plan.

Type of Finding: Material Weakness in Internal Control over Compliance Criteria: The Organization must comply with the cost standards set out at the OPM Cost Accounting Standards. Specifically, payroll costs charged to a grant must have sufficient documentation to support the employee position and rate of pay and must also be supported by sufficient time and effort documentation. Time and effort can be accomplished through utilization of time sheets or personal activity report but must be completed at least monthly and must be signed by both the employee and supervisor. Condition: A sample of 40 employees was selected for testing. During the testing, we identified 2 employees where the employee time record was different than the amount charged to the grant. Questioned Costs: Unknown Context: The time charged to the grant did not agree to the supporting employee documentation. Cause: The Organization’s payroll reporting system was unable to properly allocate the time worked for those individual periods due to system limitations and there was no process in place to adjust the payroll to actual in these instances. Effect: The effect is that payroll costs charged to the grant could potentially be incorrectly stated and/or misallocated as of year-end. Repeat Finding: No.Recommendation: We recommend management enhance internal policies and procedures to ensure the actual time worked is properly charged to grants. Views of Responsible Officials: Management concurs with the finding. Refer to the separate corrective action plan.