Audit 398537

Condition and Criteria: Periodically throughout the year a journal entry was recorded that allocated additional payroll to the grant for certain personnel which was based on management’s estimates and not on approved time sheets. Management identified these employees’ time sheets were not being accurately completed and, periodically, estimated the additional time they believed was spent on the grant but not recorded on the approved time sheets. Questioned Cost: $57,425. Cause: The employees improperly completed their time sheets and those responsible for reviewing and approving the time sheets did not detect and correct the improperly recorded time. Effect: It cannot be verified that the employees worked these additional hours that were billed to the grant. Auditor’s Recommendation: The Organization should develop and implement policies and procedures to ensure that only actual hours spent working on the grant are charged to the grant as direct labor.

Condition and Criteria: The payroll charged to the grant, relating to employees who are not 100% allocated to the grant, for April 2025, May 2025 and June 2025 could not be supported by approved time sheets. The payroll for these months were allocated based on payroll percentages from the budget instead of actual hours incurred by the employees. Questioned Cost: $56,212. Cause: Limitations of new time tracking system. Effect: It cannot be verified that the employees worked the hours billed to the grant. Auditor’s Recommendation: The Organization should use a time tracking system that requires employees to complete time sheets every pay period that encompasses both their federally funded and non-federally funded work. In addition, the system should provide for approvals of the employees’ time sheets by an appropriate person.

Condition and Criteria: Federal funds deposits were not immediately (within three days of the request) disbursed. Federal funds deposits must be disbursed for immediate obligations of the Federal programs within three days of requesting the Federal funds. Cause: Oversight by the Organization. Effect: Failure to disburse Federal funds promptly could result in the Company having excess Federal funds on hand and being required to remit excess interest. Auditor’s Recommendation: The Company should develop and implement policies and procedures to verify that the Federal funds drawn down are only for immediate Federal program cash needs.

Condition and Criteria: The Office of Management and Budget’s (“OMB”) Uniform Guidance (“UG”) requires entities to have written policies and procedures surrounding the management of their award funds. It was noted that the Company did not have written policies and procedures surrounding job descriptions, procurement and contracts (micro purchases, small purchases and simplified acquisitions), suspension and debarment, conflict of interest statement, cash management (including disbursing Federal funds within three days of request) and eligibility. Cause: The Organization has many policies and procedures in place, however, they were unaware they were required to be documented in writing. Effect: The Organization is not in compliance with the UG requirements. Auditor’s Recommendation: The Organization should document in writing all policies and procedures relating to the Federal grants.

ondition and Criteria: QARI is required to enroll participants in the program according to specific requirements. The original participant’s paperwork detailing these specific requirements was not retained by the Organization, therefore, we could not test that the submitted information was accurate. In addition, the eligibility determinations are not periodically reviewed by management to ensure eligibility information is properly obtained and only eligible participants are admitted into the program. Cause: Oversight by the Organization. Effect: The lack of retention of participant paperwork and the absence of periodic reviews of eligibility determinations may lead to incorrect information being recorded and the admission of ineligible participants into the program. Auditor’s Recommendation: The Organization should develop and implement policies and procedures to ensure that original information is retained and that management performs periodic reviews of the eligibility determinations to ensure only eligible participants are admitted to the program.