Criteria: The Office of Management and Budget (OMB) 2 CFR Part 200, Appendix XI, Compliance Supplement 2017, Part 6 Internal Control section 6-M-1 states: "The A-102 Common Rule, 0MB Circular A-110 and 2 CFR section 200.303 require that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award." Condition: The City did not properly approve payroll timesheets for both CDBG and Section 8 program administration expenditures. Cause: Lack of internal controls and adequate staff training over the proper approval process of electronic timesheets. Effect or Potential Effect: The City could be charging an inaccurate or unallowable amount of payroll expenditures to its Federal grants programs, which is a noncompliance for allowable costs. Questioned Cost: Unknown Context: We selected a sample of two employees for four pay periods each for CDBG and Section 8 to test payroll internal controls and compliance. Our review identified 8 out of the 13 timesheets had no indication of supervisory review and approval, and no further support can be provided to ascertain that the timesheet is accurate and valid for direct program administration to request for Federal award reimbursement. Repeat of a Prior-Year Finding: No