Audit 389053

Award Information: Economic Development Initiative - Community Project Funding—Assistance Listing No. 14.251; Grant No. B-23-CP-CA-0206; Reporting period—Year ended June 30, 2024 Material weakness: As discussed at Finding 2025-002, the SEFA was originally prepared improperly for the prior and current years. We consider this to be a financial statement and compliance finding.

Criteria: According to 2 CFR §200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Specifically. employees whose time is split among multiple activities must maintain time and effort reports reflecting actual hours worked in a manner consistent with 2 CFR §200.430(g)(vi)and must be supported by appropriate documentation that complies with the federal cost principles. Condition: There were variances in the amounts charged to the grant between the expenditures billed and the expenditures recorded in the general ledger as supported by timesheets coded to specific programs. Cause: Employees may not be properly trained on time coding and the review of supervisors were likely focused on hours worked, rather than job codes. The differences occurred as a result of adjustments made in the billing review process. The reason for the adjustments was not documented. Possible effect: Amounts charged to grants could be misstated. Questioned cost: N/A