Audit 399321

Finding 2025-001: Lack of Time and Effort Documentation and Review Federal Program: Coronavirus State and Local Fiscal Recovery Funds (SLFRF) Assistance Listing Number (ALN): 21.027 Federal Agency: U.S. Department of the Treasury Type of Finding: Significant deficiency in internal control over compliance Criteria: Per 2 CFR 200.430(i), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and are supported by a system of internal control providing reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition and context: We reviewed all salary charges for one of the seven months included in the grant period. For the selected month, timecards were available to support the salary charges. Of the five employees reviewed, four spent 100% of their time on this grant’s allowable activities. One employee tested did allocate time to the grant based on the allocation as stated in the budget. There was no written evidence of supervisory review of the allocation percentages. Although the allocation methodology was based on budget, we verified that all employees charged to the grant had job titles and responsibilities consistent with allowable grant activities. No evidence was found of unallowable or inappropriate salary charges during our testing of the selected month. Cause: As most employees spend the entirety of their time on activities allowable under the grant, there was no process in place to ensure the timecard allocations for the one employee who split their time among multiple activities was reconciled to the amount charged to the grant.. Effect: Lack of written review and reconciliation increases the risk that salary costs may not be allocated accurately, potentially resulting in noncompliance with allowable cost principles under Uniform Guidance (2 CFR 200.430). Recommendation: We recommend the entity implement a process to ensure written supervisory review and after-the-fact certification of salary allocations to grants, in compliance with Uniform Guidance requirements. Views of Responsible Officials: Management concurs with the finding and will address the issue as outlined in the corrective action plan included in this report