Description of Finding: The allocation of payroll costs to programs are done manually instead of done based on entity-wide timesheets
Statement of Concurrence or Nonconcurrence:
The California Asian Pacific Chamber of Commerce (CalAsian) agrees with the finding.
Corrective Action:
CalAsian ackno...
Description of Finding: The allocation of payroll costs to programs are done manually instead of done based on entity-wide timesheets
Statement of Concurrence or Nonconcurrence:
The California Asian Pacific Chamber of Commerce (CalAsian) agrees with the finding.
Corrective Action:
CalAsian acknowledges the serious nature of this finding and the potential for damage to relationships with the grantors and Federal entities. The Interim Controller and Director of Finance are currently implementing an ERP system which will allow for better cost collection, reporting and reviews of the grant-related expenses for
accuracy, reliability, and reconciliation.
We also understand these findings are repetitive from the 2021 audit; however, due to catch-up of the prior year audits, we were unable to address these issues prior to completion of the 2022 audit. This delay was caused by a change in auditors as our previous auditor did not have the capacity to retain us as clients due to staff shortages
related to COVID. A subcontractor has been retained to assist with providing information for the 2023 audit to bring the audits current.
The ERP system includes electronic timesheets for daily charging to specific grants, as well as more visibility into the proper separation of direct, indirect, and unallowable costs per the CFR. Timesheet training has been performed and timesheet completion is required for all employees each day. This will begin on 1/1/2025 and will provide support for hours worked/billed, as well as document the certification and approvals that all time entered is accurate and in compliance with contract requirements. and provide proper support for all grant labor costs and indirect costs.
An indirect cost pool allocation structure is being designed and implemented to properly allocate the allowable indirect costs to each work effort, including Fringe, Overhead and G&A. This proposed structure and rates will be submitted for approval in 2025 for use in billing the contracts properly.
Monthly reviews by the Project Directors/Managers plus Accounting will be performed to identify any potential cost charging issues and corrective action(s) required.
Name of Contact Person:
Ryan Fong, Director of Finance, 916-446-7883, rfong@calasiancc.org
Susan Wright, Controller, 256-689-7055, swright@calasiancc.org
Pat Fong Kushida, President & CEO, 916-446-7883, patfongkushida@calasiancc.org
Projected Completion Date: January 2025