Department of Interior Federal Financial Assistance Listing 15.042 Indian School Equalization Allowable Costs/Activities Allowed or Unallowed Material Weakness in Internal Control Over Compliance and Immaterial Instance of Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – In our testing of allowable costs and activities we noted five instances where payroll expenditures were not paid in accordance with the employment letter. Cause – Procedures are not in place to adequately identify unallowable costs or activities. Effect – A lack of internal controls over allowable costs and activities could result in improper use of federal funds and non-compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A nonstatistical sample of 60 transactions out of 4,205 total transactions were selected for testing, which accounted for $98,689 of $1,818,900 of federal program expenditures. Repeat Finding from Prior Years – No. Recommendation – The School should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Views of Responsible Officials – There is no disagreement with the audit finding
Department of the Interior Federal Financial Assistance Listing 15.046 Administrative Cost Grants for Indian Schools Allowable Costs/Activities Allowed or Unallowed Material Weakness in Internal Control Over Compliance and Immaterial Instance of Noncompliance Criteria – A good system of internal control includes an adequate system for ensuring all expenditures are properly recorded and allowable under the related federal grant in accordance with 2 CFR 200.430(i). Condition – In our testing of allowable costs and activities we noted four instances where payroll expenditures were not paid in accordance with the employment letter. Cause – Procedures are not in place to adequately identify unallowable costs or activities. Effect – A lack of internal controls over allowable costs and activities could result in the improper use of federal funds and non-compliance with the provisions of applicable grant requirements. Questioned Costs – None reported Context/Sampling – A nonstatistical sample of 60 transactions out of 821 total transactions were selected for testing, which accounted for $129,328 of $648,490 of federal program expenditures. Repeat Finding from Prior Years – Yes, 2022-007 Recommendation – The School should review internal control procedures to ensure federal expenditures are being properly reviewed for unallowable costs and activities. Views of Responsible Officials – There is no disagreement with the audit finding.
2023-001 - Allowable Costs/Cost Principles Federal Program Information: Department of Education: ALN - 84.425 - Elementary & Secondary School Emergency Relief Fund Criteria: The following CFR(s) apply to this finding: 2 CFR 200.430(i)(1(vii) Condition: During audit procedures, it was identified that some of the School Districts certifications for time and effort records did not have the correct ESSER program listed. Cause: The School District does not have the necessary internal controls over compliance. Effect: The School District is not reviewing the required employee certifications to ensure the correct identification of the ESSER program which could result in the employees being charged to the incorrect program. Identification of Questioned Costs: None identified. Context: The School District does not have the correct controls in place for the review of time certifications for employees paid with the federal funds. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the School District implements internal control processes and procedures to ensure that time certifications are accurate and complete. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the School District.
2023-001 - Allowable Costs/Cost Principles Federal Program Information: Department of Education: ALN - 84.425 - Elementary & Secondary School Emergency Relief Fund Criteria: The following CFR(s) apply to this finding: 2 CFR 200.430(i)(1(vii) Condition: During audit procedures, it was identified that some of the School Districts certifications for time and effort records did not have the correct ESSER program listed. Cause: The School District does not have the necessary internal controls over compliance. Effect: The School District is not reviewing the required employee certifications to ensure the correct identification of the ESSER program which could result in the employees being charged to the incorrect program. Identification of Questioned Costs: None identified. Context: The School District does not have the correct controls in place for the review of time certifications for employees paid with the federal funds. Repeat Finding: This is not a repeat finding. Recommendation: It is recommended that the School District implements internal control processes and procedures to ensure that time certifications are accurate and complete. Views of Responsible Officials and Corrective Action Plan: Please see the Corrective Action Plan issued by the School District.
Condition: The costs charged to the Federal award were not adequately documented. As a result, there was a delay in completing the Uniform Grant Guidance audit. Additional time and analysis was required to accumulate the direct costs that were charged to the major Federal program. Although the Organization was able to provide sufficient support for the personnel cost charged to the program, it was not documented or maintained prior to the start of the audit. Criteria: In accordance with 2 CFR §200.303: The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. In accordance with 2 CFR 200.430: (i) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; (iv) Encompass both federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; (v) Comply with the established accounting policies and practices of the non-Federal entity; and (vi) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Cause: The Organization did not have a system of internal control, to track the costs allocated to the Federal, which provides reasonable assurance that the charges are accurate, allowable, and properly allocated during the period the costs were incurred. Effect: Expenditures reported to the Federal government could be unallowable/disallowed and subject to return. Questioned Costs: Unknown. Recommendation: We recommend the Organization establish and implement controls to maintain compliance with reporting requirements in accordance with Uniform Grant Guidance and ensure personnel receive appropriate training for handling programs that are Federally funded. Auditee Response and Corrective Action Plan: Refer to the schedule of corrective action plans. Auditor’s Conclusion: Finding remains as stated.
Finding Number: 2023-001: Represents a material weakness in internal control over compliance with Maine Mathematics and Science Alliance’s major federal program. Repeat Finding: Yes Type of Finding: Material Weakness Description: Internal Control over Payroll Major Program: NATIONAL SCIENCE FOUNDATION Research Development Cluster (Direct) AL# 47.076 – Education and Human Resources AL# 47.070 – Computer and Information Science and Engineering Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirements: Activities Allowed or Unallowed and Allowable Costs, Cost Principles NSF Award Numbers Effected: 1831427 (Grant term 10/1/18 - 6/30/23), 1933491 (Grant term 1/1/20 - 6/30/24), 2009613 (Grant term 5/15/20 - 4/30/24), 1657217 (Grant term 8/15/17 - 7/31/22), 2115229 (Grant term 9/1/21 - 8/31/25) and 2201674 (Grant term 8/1/22 - 7/31/26) Condition: The internal controls over compliance for allowable activities and allowable costs are substantially the same for AL #47.076 and #47.070. During our audit, we noted the following: Wages charged to the programs are inconsistently including or excluding taxable benefits Pay rates noted in personnel files for several employees did not agree to the rates being paid One employee's timesheet hours did not agree to the hours paid on the payroll register Several instances in which payroll expenditures were incorrectly allocated to the programs. The employee's full wage for the pay period is being allocated rather than directly charging the program for the hours indicated on the timesheet as spent in the program and only allocating the other administrative or vacation time. The allocations were not based on time and effort records. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;”. Cause: During fiscal year 2023, there was turnover in the personnel handling payroll. Effect: Without ensuring the payroll allocation is supported by time and effort records, it is possible that grants could be overcharged, resulting in misstated financial statements and unallowable costs. Context: The situation noted in the audit did not result in reportable questioned costs. The sample was not intended, and was not, a statistically valid sample. Recommendation: We recommend that the database used in the allocation of payroll to the grants be compared to the time and effort records prior to posting into the general ledger and sending to Bangor Payroll for processing. We recommend that approved pay rates in personnel files be compared to what has been provided to Bangor Payroll and corrections be made as necessary, as soon as possible. This should be completed and documented by an appropriate individual. View of responsible officials: Management agrees with the finding and has committed to a corrective action plan.
Finding Number: 2023-001: Represents a material weakness in internal control over compliance with Maine Mathematics and Science Alliance’s major federal program. Repeat Finding: Yes Type of Finding: Material Weakness Description: Internal Control over Payroll Major Program: NATIONAL SCIENCE FOUNDATION Research Development Cluster (Direct) AL# 47.076 – Education and Human Resources AL# 47.070 – Computer and Information Science and Engineering Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirements: Activities Allowed or Unallowed and Allowable Costs, Cost Principles NSF Award Numbers Effected: 1831427 (Grant term 10/1/18 - 6/30/23), 1933491 (Grant term 1/1/20 - 6/30/24), 2009613 (Grant term 5/15/20 - 4/30/24), 1657217 (Grant term 8/15/17 - 7/31/22), 2115229 (Grant term 9/1/21 - 8/31/25) and 2201674 (Grant term 8/1/22 - 7/31/26) Condition: The internal controls over compliance for allowable activities and allowable costs are substantially the same for AL #47.076 and #47.070. During our audit, we noted the following: Wages charged to the programs are inconsistently including or excluding taxable benefits Pay rates noted in personnel files for several employees did not agree to the rates being paid One employee's timesheet hours did not agree to the hours paid on the payroll register Several instances in which payroll expenditures were incorrectly allocated to the programs. The employee's full wage for the pay period is being allocated rather than directly charging the program for the hours indicated on the timesheet as spent in the program and only allocating the other administrative or vacation time. The allocations were not based on time and effort records. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;”. Cause: During fiscal year 2023, there was turnover in the personnel handling payroll. Effect: Without ensuring the payroll allocation is supported by time and effort records, it is possible that grants could be overcharged, resulting in misstated financial statements and unallowable costs. Context: The situation noted in the audit did not result in reportable questioned costs. The sample was not intended, and was not, a statistically valid sample. Recommendation: We recommend that the database used in the allocation of payroll to the grants be compared to the time and effort records prior to posting into the general ledger and sending to Bangor Payroll for processing. We recommend that approved pay rates in personnel files be compared to what has been provided to Bangor Payroll and corrections be made as necessary, as soon as possible. This should be completed and documented by an appropriate individual. View of responsible officials: Management agrees with the finding and has committed to a corrective action plan.
Information on the Federal Program: Assistance Listing Number 93.600—Head Start Program, United States Department of Health and Human Services. Pass-Through Entity: the City and County of Denver and Mile High Early Learning. Award Number: MOEAI-202158316, MOEAI-202158627, 08HP000174-03. Compliance Requirements: Allowable Costs Type of Finding: Material Noncompliance and Significant Deficiency. Criteria: 2 CFR 200.430(i) Compensation – Personal Services, Standards for Documentation of Personnel Services. Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: For the year ended June 30, 2023, we reviewed a sample of employees charged to the Head Start grant. In multiple instances the support for the allocation of time charged to the grant was not adequately documented. Cause: The organization uses a manual allocation process for their time that is cumbersome for both the staff and the reviewing supervisor, as a result allocations weren’t consistently documented or reviewed. Effect or Potential Effect: The potential effect could be the misallocation of staff time between grants. Questioned Costs: Known error, $3,882 and likely error, $16,202. Context: Of the 60 time cards ($270,165 of time and effort charged to the grant) reviewed for testing, 4 time cards ($3,882 of time and effort) did not have adequate support for the portion of their time charged to the grant. Repeat finding: Repeat finding of 2022-001 Recommendation: We would recommend the Organization pursue an improved time tracking system that both automates the payroll and time tracking process, and allows for better monitoring of employee review and approval of allocation support. Views of Responsible Official: This was noted in last year's audit but was identified late in the fiscal year. The time required to do the due diligence and implementation was part of our timesheet review system was not fixed until after June 2023. As noted in last year's goal, Sewall administration completed a review of payroll companies and committed on a new system that began in October 2023. Along with that, we have organized a new internal system of tracking staff's time given the complexities of the many blended funding sources. We have also implemented a regular review and supervision of time sheet allocations.
2023 – 001 Allowable Costs Federal Agency: U.S. Department Education Federal Program Name: Charter School Program Assistance Listing Number: 84.282 Pass-Through Agency: Indiana Department of Education Pass-Through Number(s): 72229, S282D190002 Award Period: July 1, 2022 – June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance Criteria or specific requirement: The Compliance Supplement requires that compensation for personal services be charged to the federal grant based upon approved actual time worked on the program and not based on an allocation or budget (2 CFR 200.430(i)). Condition: While performing audit procedures, it was noted that payroll expenses were charged to the grant program based upon an allocation from the budget and not on approved and/or certified time worked in the program. Questioned costs: $356,845 Context: During the process of obtaining an understanding of internal controls and processing of payroll expenditures, we noted payroll was not reviewed to ensure the expense charged to the grants was accurate based upon approved actual time spent in the program and accurate pay rates. Cause: Salary figures for salaried employees were charged to the federal grant based on unapproved work actually performed for the program and inaccurate pay rates were utilized for overtime and an employee transition to full time. Effect: The organization has not fully followed compliance attributes with the allowable costs principles set forth by the Compliance Supplement related to allocation of salaries being charged based on approved time worked for a program. Personnel need to reinforce policies to ensure control procedures are in place to ensure salaries charged to a grant are appropriately based on actual approved time worked in a program. Repeat Finding: No. Recommendation: We recommend the School ensure policies and procedures for payroll expenditures for grant programs be charged to the federal grant based on approved hours worked in the program. Views of responsible officials: There is no disagreement with the audit finding.
2023 – 001 Allowable Costs Federal Agency: U.S. Department Education Federal Program Name: Charter School Program Assistance Listing Number: 84.282 Pass-Through Agency: Indiana Department of Education Pass-Through Number(s): 72229, S282D190002 Award Period: July 1, 2022 – June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance Material Noncompliance Criteria or specific requirement: The Compliance Supplement requires that compensation for personal services be charged to the federal grant based upon approved actual time worked on the program and not based on an allocation or budget (2 CFR 200.430(i)). Condition: While performing audit procedures, it was noted that payroll expenses were charged to the grant program based upon an allocation from the budget and not on approved and/or certified time worked in the program. Questioned costs: $356,845 Context: During the process of obtaining an understanding of internal controls and processing of payroll expenditures, we noted payroll was not reviewed to ensure the expense charged to the grants was accurate based upon approved actual time spent in the program and accurate pay rates. Cause: Salary figures for salaried employees were charged to the federal grant based on unapproved work actually performed for the program and inaccurate pay rates were utilized for overtime and an employee transition to full time. Effect: The organization has not fully followed compliance attributes with the allowable costs principles set forth by the Compliance Supplement related to allocation of salaries being charged based on approved time worked for a program. Personnel need to reinforce policies to ensure control procedures are in place to ensure salaries charged to a grant are appropriately based on actual approved time worked in a program. Repeat Finding: No. Recommendation: We recommend the School ensure policies and procedures for payroll expenditures for grant programs be charged to the federal grant based on approved hours worked in the program. Views of responsible officials: There is no disagreement with the audit finding.
Section III - Federal Award Findings and Questioned Costs Finding 2023-002 Significant Deficiency Assistance Listing: 84.351 C.A.R.E. Condition: Cleveland Play House does not have adequate documentation to support all charges to the federal program. Of the 40 payroll charges tested, 32 did not have adequate documentation. Of the 40 non-payroll charges tested, supporting documentation for 2 charges was unable to be located. In addition, management provided an Excel spreadsheet to support the charges that were made to the program rather than reporting from their financial management system that is compliant with Section 200.302. Criteria: 2 CFR 200.430(i) states that charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. 2 CFR 200.403(g) states that for costs to be allowed under Federal awards, they must be adequately documented. In addition, Section 200.302 requires that the financial management system must provide for an identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received; an accurate, current and complete disclosure of the financial results of each federal award or program; and a comparison of expenditures with budget amounts for each federal award. Cause: Due to significant organizational turnover in fiscal years 2022 and 2023, individuals were not completing timesheets to document level of effort for federal programs. Although management was verbally communicating with these individuals during the year and tracking the time they spent on the program within a spreadsheet, this is not considered adequate documentation. In addition, and also a result of the turnover, certain documentation to support non-payroll expenditures was unable to be located. Effect: Cleveland Play House did not have adequate documentation to support all costs charged to the federal program. In addition, an ineffective financial management system could lead to incorrect identification of costs charged to a federal program and an inability to substantiate that doublecharging did not occur. Repeat finding: This is a repeat finding, refer to 2022-002. Section III - Federal Award Findings and Questioned Costs (Continued) Questioned costs: Non-payroll: $267 Payroll: $49,059 Recommendation: We recommend that Cleveland Play House develop a policy and procedure to ensure that all hours submitted for federal reimbursement are supported with timesheets that are approved by a supervisor. In addition, staff should be made aware of the policy and procedures to ensure retention of documentation for non-payroll expenditures. Views of responsible officials: Management concurs with this recommendation. See also corrective action plan.
Identification of the Federal Program: Assistance Listing Number 17.259 – WIOA Youth Activities Program – U.S. Department of Labor. Pass-through Entity: New York City Department of Youth and Community Development. Award Number: 90535A / 90536A / 90537A / 90538A. Compliance Requirement: Allowable Costs/Cost Principles Criteria: Requirements per section 2 CFR Part 200.430 of the Uniform Guidance state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During our testing for the year ended June 30, 2023, we noted a lack of detail for employee’s actual hours spent on different programs. Time and effort are allocated based on budgeted amounts. Cause: Allocation to funding sources were entered into the payroll system based on budgeted estimates rather than actual time records. Effect or Potential Effect: The lack of contemporaneous documentation of employee hours worked by grant or federal program could allow the Organization to improperly allocate employee pay to federal grants. Questioned Costs: $65,379 Context: As most employees work specifically on a single program, there was only one employee that worked on multiple programs for which time spent on the program could not be substantiated. The total questioned cost allocated to the program for this person totaled $65,379. Recommendation: The Organization should implement a requirement for employees, both exempt and nonexempt, to maintain accurate records of hours worked by program. Repeat finding: Yes, 2022-003. View of Responsible Officials: The Organization concurs with the finding and the related recommendations. Management has begun to implement mandatory time and program effort records during the year ending June 30, 2024.
Identification of the Federal Program: Assistance Listing Number 17.259 – WIOA Youth Activities Program – U.S. Department of Labor. Pass-through Entity: New York City Department of Youth and Community Development. Award Number: 90535A / 90536A / 90537A / 90538A. Compliance Requirement: Allowable Costs/Cost Principles Criteria: Requirements per section 2 CFR Part 200.430 of the Uniform Guidance state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During our testing for the year ended June 30, 2023, we noted a lack of detail for employee’s actual hours spent on different programs. Time and effort are allocated based on budgeted amounts. Cause: Allocation to funding sources were entered into the payroll system based on budgeted estimates rather than actual time records. Effect or Potential Effect: The lack of contemporaneous documentation of employee hours worked by grant or federal program could allow the Organization to improperly allocate employee pay to federal grants. Questioned Costs: $65,379 Context: As most employees work specifically on a single program, there was only one employee that worked on multiple programs for which time spent on the program could not be substantiated. The total questioned cost allocated to the program for this person totaled $65,379. Recommendation: The Organization should implement a requirement for employees, both exempt and nonexempt, to maintain accurate records of hours worked by program. Repeat finding: Yes, 2022-003. View of Responsible Officials: The Organization concurs with the finding and the related recommendations. Management has begun to implement mandatory time and program effort records during the year ending June 30, 2024.
Identification of the Federal Program: Assistance Listing Number 17.259 – WIOA Youth Activities Program – U.S. Department of Labor. Pass-through Entity: New York City Department of Youth and Community Development. Award Number: 90535A / 90536A / 90537A / 90538A. Compliance Requirement: Allowable Costs/Cost Principles Criteria: Requirements per section 2 CFR Part 200.430 of the Uniform Guidance state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During our testing for the year ended June 30, 2023, we noted a lack of detail for employee’s actual hours spent on different programs. Time and effort are allocated based on budgeted amounts. Cause: Allocation to funding sources were entered into the payroll system based on budgeted estimates rather than actual time records. Effect or Potential Effect: The lack of contemporaneous documentation of employee hours worked by grant or federal program could allow the Organization to improperly allocate employee pay to federal grants. Questioned Costs: $65,379 Context: As most employees work specifically on a single program, there was only one employee that worked on multiple programs for which time spent on the program could not be substantiated. The total questioned cost allocated to the program for this person totaled $65,379. Recommendation: The Organization should implement a requirement for employees, both exempt and nonexempt, to maintain accurate records of hours worked by program. Repeat finding: Yes, 2022-003. View of Responsible Officials: The Organization concurs with the finding and the related recommendations. Management has begun to implement mandatory time and program effort records during the year ending June 30, 2024.
Identification of the Federal Program: Assistance Listing Number 17.259 – WIOA Youth Activities Program – U.S. Department of Labor. Pass-through Entity: New York City Department of Youth and Community Development. Award Number: 90535A / 90536A / 90537A / 90538A. Compliance Requirement: Allowable Costs/Cost Principles Criteria: Requirements per section 2 CFR Part 200.430 of the Uniform Guidance state that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: During our testing for the year ended June 30, 2023, we noted a lack of detail for employee’s actual hours spent on different programs. Time and effort are allocated based on budgeted amounts. Cause: Allocation to funding sources were entered into the payroll system based on budgeted estimates rather than actual time records. Effect or Potential Effect: The lack of contemporaneous documentation of employee hours worked by grant or federal program could allow the Organization to improperly allocate employee pay to federal grants. Questioned Costs: $65,379 Context: As most employees work specifically on a single program, there was only one employee that worked on multiple programs for which time spent on the program could not be substantiated. The total questioned cost allocated to the program for this person totaled $65,379. Recommendation: The Organization should implement a requirement for employees, both exempt and nonexempt, to maintain accurate records of hours worked by program. Repeat finding: Yes, 2022-003. View of Responsible Officials: The Organization concurs with the finding and the related recommendations. Management has begun to implement mandatory time and program effort records during the year ending June 30, 2024.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding 2023-002 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted five instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. Effect: The effect of the errors noted above did not exceed $850. Although the overall errors were immaterial, an inherent risk exists that errors could be material and not be detected and corrected without sufficient review. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization review its current processes over payroll to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. The CFO will immediately evaluate the need for additional controls to ensure accurate recording of time charged to program as reflected on the employee’s timesheet.
Finding #2023-001 Type: Significant Deficiency Federal Agency: Department of Health and Human Services Program Name: Research and Development Cluster AL Number: 93.399 Grant Name: Cancer Research of Wisconsin and Northern Michigan (CROWN) Consortium Grant Identification Number: 5UG1CA239769-03 Federal Award Year: August 1, 2021 through July 31, 2022 Compliance Requirement: Allowable Costs/Cost Principles Criteria In accordance with the documentation standards of 2 CFR section 200.430(i), costs of compensation for personal services are allowable to the extent the total compensation for individual employees: a. Is reasonable for the services rendered and conforms to the established written policy of the non-federal entity consistently applied to both federal and non-federal activities; b. Follows an appointment made in accordance with a non-federal entity’s rules or written policies and meets the requirements of federal statute, where applicable; and c. Is determined and supported as provided in 2 CFR section 200.430(i), including that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition Found During testwork performed over the Research and Development Cluster, for 1 of 25 payroll items selected for testing we noted that a clerical error was made for an employee’s salary as 76% of their time was allocated to the grant, instead of the actual 0.76%. As such, $12,411 of the individual’s salary allocated to the grant was deemed unallowable. There are additional known questioned costs related to fringe and indirect costs, as the base upon which those calculations were applied was misstated for the above. Cause and Possible Asserted Effect The control to reconcile the costs allocated to the grant to supporting records did not operate effectively, resulting in incorrect charges being applied to the grant. Questioned Costs Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding from Prior Year No Recommendation We recommend a control reconciling all costs allocated to the grant to supporting records be performed on a monthly basis. Views of Responsible Officials See attached correction plan at the end of this report.
Activities Allowed or Unallowed and Allowable Costs Material Weakness in Internal Control over Compliance Program Name: Career and Technical Education Act, Title I, Part C Federal Financial Assistance Listing Numbers: 84.048A Federal Agency: U.S. Department of Education (ED) Pass-Through Entity: California Community Colleges Chancellor’s Office Program Name: Foster Care Title IV-E Federal Financial Assistance Listing Numbers: 93.658 Federal Agency: U.S. Department of Health and Human Services (HHS) Pass-Through Entity: City and County of San Francisco Criteria or Specific Requirements The Uniform Guidance states that personnel costs for federal programs should represent only “reasonable amounts for activities contributing and directly related to work under an agreement”. Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed (2 CFR 200.430). Condition Time and effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program, was not performed consistently or in a timely manner for the year ending June 30, 2023. Questioned Costs There were no questioned costs associated with the condition identified. Context The federal programs referenced above had a total of $1,521,228 in expenditures for the year ended June 30, 2023, of which $832,331 was associated with salaries and benefits. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District’s review of personnel charges to identify the employee costs that should and should not be charged to federal programs was not performed consistently, or in a timely manner. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs for federal program in accordance with their policies and procedures. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel charges for federal grants.
Activities Allowed or Unallowed and Allowable Costs Material Weakness in Internal Control over Compliance Program Name: Career and Technical Education Act, Title I, Part C Federal Financial Assistance Listing Numbers: 84.048A Federal Agency: U.S. Department of Education (ED) Pass-Through Entity: California Community Colleges Chancellor’s Office Program Name: Foster Care Title IV-E Federal Financial Assistance Listing Numbers: 93.658 Federal Agency: U.S. Department of Health and Human Services (HHS) Pass-Through Entity: City and County of San Francisco Criteria or Specific Requirements The Uniform Guidance states that personnel costs for federal programs should represent only “reasonable amounts for activities contributing and directly related to work under an agreement”. Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed (2 CFR 200.430). Condition Time and effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program, was not performed consistently or in a timely manner for the year ending June 30, 2023. Questioned Costs There were no questioned costs associated with the condition identified. Context The federal programs referenced above had a total of $1,521,228 in expenditures for the year ended June 30, 2023, of which $832,331 was associated with salaries and benefits. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District’s review of personnel charges to identify the employee costs that should and should not be charged to federal programs was not performed consistently, or in a timely manner. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs for federal program in accordance with their policies and procedures. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel charges for federal grants.
Activities Allowed or Unallowed and Allowable Costs Material Weakness in Internal Control over Compliance Program Name: Career and Technical Education Act, Title I, Part C Federal Financial Assistance Listing Numbers: 84.048A Federal Agency: U.S. Department of Education (ED) Pass-Through Entity: California Community Colleges Chancellor’s Office Program Name: Foster Care Title IV-E Federal Financial Assistance Listing Numbers: 93.658 Federal Agency: U.S. Department of Health and Human Services (HHS) Pass-Through Entity: City and County of San Francisco Criteria or Specific Requirements The Uniform Guidance states that personnel costs for federal programs should represent only “reasonable amounts for activities contributing and directly related to work under an agreement”. Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed (2 CFR 200.430). Condition Time and effort reporting, or another similar internal control activity to retroactively verify employee time spent on the program, was not performed consistently or in a timely manner for the year ending June 30, 2023. Questioned Costs There were no questioned costs associated with the condition identified. Context The federal programs referenced above had a total of $1,521,228 in expenditures for the year ended June 30, 2023, of which $832,331 was associated with salaries and benefits. Effect Without effective internal controls in place over personnel costs, the District risks noncompliance for program costs that could be material. Cause The District’s review of personnel charges to identify the employee costs that should and should not be charged to federal programs was not performed consistently, or in a timely manner. Repeat Finding (Yes or No) No Recommendation The District should monitor personnel costs for federal program in accordance with their policies and procedures. The District should review personnel costs on a regular basis to ensure that costs charged are supported by allowable activities directly related to the program. Additionally, adequate supporting documentation should be retained for personnel charges for federal grants.
Finding Number: 2023‐001 Repeat Finding: No Program Name/Assistance Listing Title: COVID‐19 Education Stabilization Fund Assistance Listing Number: 84.425U, 84.425W Federal Agency: U.S. Department of Education Federal Award Number: S425U210038, S425W210003 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Allowable Costs/Cost Principles Criteria According to the Office of Management and Budget Uniform Guidance requirements 2 CFR §200.230(i) charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Specifically, according to 2 CFR §200.430(i)(vii) the records must support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non‐Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition Time and effort records were not accurately maintained for employees. Cause District management did not have adequate internal controls in place to ensure the time and effort documentation completed by the employee accurately reflected the work performed. Effect The District was not in compliance with the requirements set forth by the federal government. Context For one employee reviewed, time and effort documentation was not maintained for an employee that worked on a federal program and non‐federal program. For seven employees reviewed who work on more than one federal program, the employees' time and effort documentation only included one federal program. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should design and implement internal controls to ensure proper training on the preparation of time and effort documentation is distributed to all employees and that all time and effort documentation accurately reflects the work performed. Views of Responsible Officials See Corrective Action Plan.
Finding Number: 2023‐001 Repeat Finding: No Program Name/Assistance Listing Title: COVID‐19 Education Stabilization Fund Assistance Listing Number: 84.425U, 84.425W Federal Agency: U.S. Department of Education Federal Award Number: S425U210038, S425W210003 Pass‐Through Agency: Arizona Department of Education Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Allowable Costs/Cost Principles Criteria According to the Office of Management and Budget Uniform Guidance requirements 2 CFR §200.230(i) charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Specifically, according to 2 CFR §200.430(i)(vii) the records must support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non‐Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition Time and effort records were not accurately maintained for employees. Cause District management did not have adequate internal controls in place to ensure the time and effort documentation completed by the employee accurately reflected the work performed. Effect The District was not in compliance with the requirements set forth by the federal government. Context For one employee reviewed, time and effort documentation was not maintained for an employee that worked on a federal program and non‐federal program. For seven employees reviewed who work on more than one federal program, the employees' time and effort documentation only included one federal program. The sample was not intended to be, and was not, a statistically valid sample. Recommendation The District should design and implement internal controls to ensure proper training on the preparation of time and effort documentation is distributed to all employees and that all time and effort documentation accurately reflects the work performed. Views of Responsible Officials See Corrective Action Plan.
Finding Reference Number: SA2023-002 Documenting Payroll Costs Charged to Grant Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant – Entitlement Grants COVID-19 - Community Development Block Grants/Entitlement Grants-CV Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-22-MC-06-0010 COVID-19 - B-20-MW-06-0010 Criteria: 2 CFR Part 200.430(i), “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” requires that grantees adhere to the following, “Payroll systems must be based on records that accurately reflect the work performed” and “be supported by a system of internal controls that provides reasonable assurances that charges are accurate, allowable, and properly allocated...” The payroll records must be a part of the official record, reflect the employee’s total activity and show if the specific activity of the person is being paid by more than one federal award. Section 200.430(i)(viii) indicates that budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that the system for establishing the estimates produces reasonable approximations of the activity actually performed, among other requirements. Condition: We noted that the payroll costs for three employees were charged to the program based on a flat rate percentage of the payroll and benefits costs, rather than based on the actual hours worked. Although we understand the housing staff periodically reviews the estimates to ensure they were supported and did not need adjustment, there is no formal documentation of the review and conclusions reached. City staff did provide us with the annual timesheet reconciliation worksheets for two of the employees that showed that on average over fiscal year 2023, the employees spent more actual time than was allocated via the flat percentage rate to the grant program. Effect: The City is not in compliance with the payroll documentation requirements set forth in 2 CFR Part 200.430(i). Cause: We understand that grant program staff were not aware of the payroll documentation requirement. Recommendation: The City should establish procedures to ensure that payroll costs charged to the program are documented in accordance with 2 CFR Part 200.430 for the CDBG program and all federal grant programs. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding Reference Number: SA2023-002 Documenting Payroll Costs Charged to Grant Assistance Listing Number: 14.218 Assistance Listing Title: Community Development Block Grant – Entitlement Grants COVID-19 - Community Development Block Grants/Entitlement Grants-CV Federal Agency: Department of Housing and Urban Development Federal Award Identification Number: B-22-MC-06-0010 COVID-19 - B-20-MW-06-0010 Criteria: 2 CFR Part 200.430(i), “Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards” requires that grantees adhere to the following, “Payroll systems must be based on records that accurately reflect the work performed” and “be supported by a system of internal controls that provides reasonable assurances that charges are accurate, allowable, and properly allocated...” The payroll records must be a part of the official record, reflect the employee’s total activity and show if the specific activity of the person is being paid by more than one federal award. Section 200.430(i)(viii) indicates that budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that the system for establishing the estimates produces reasonable approximations of the activity actually performed, among other requirements. Condition: We noted that the payroll costs for three employees were charged to the program based on a flat rate percentage of the payroll and benefits costs, rather than based on the actual hours worked. Although we understand the housing staff periodically reviews the estimates to ensure they were supported and did not need adjustment, there is no formal documentation of the review and conclusions reached. City staff did provide us with the annual timesheet reconciliation worksheets for two of the employees that showed that on average over fiscal year 2023, the employees spent more actual time than was allocated via the flat percentage rate to the grant program. Effect: The City is not in compliance with the payroll documentation requirements set forth in 2 CFR Part 200.430(i). Cause: We understand that grant program staff were not aware of the payroll documentation requirement. Recommendation: The City should establish procedures to ensure that payroll costs charged to the program are documented in accordance with 2 CFR Part 200.430 for the CDBG program and all federal grant programs. View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the City.
Finding 2023-002 – Allowable Costs/Cost Principles Identification of the federal program: U.S. Department of Health and Human Services Medical Assistance Program (Medicaid Cluster) Assistance Listing No. 93.778 Passed through County of Sacramento Pass Through Number Pass Through Entity Grant Period 7202100-23-096 County of Sacramento (7/1/2022 – 12/10/2022) Mercy San Juan Medical Center Criteria or specific requirement (including statutory, regulatory, or other citation): 2 CFR 200.303(a) requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.430 (i) states “Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflected the work performed. These records must: (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) be incorporated into the official records of the non-Federal entity; (iii) reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; (iv) encompass both federal assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; (v) comply with the established accounting policies and practices of the non-Federal entity.” Condition: At Mercy San Juan Medical Center, internal controls over the required allowability criteria with regard to payroll expense were not performed for 2 of 25 employees selected for testing. Cause: Mercy San Juan Medical Center management did not consistently perform the necessary internal control procedures addressing the requirements of 2 CFR 200.303(a) and 2 CFR 200.430. Effect or potential effect: Unallowable and/or inaccurate payroll expenditures could be charged to the federal program. Questioned costs: None. Context: For 2 of 25 payroll expenditures selected for testing, Mercy San Juan Medical Center did not properly approve the employee timecard for time charged to the grant in accordance with the practices of Mercy San Juan Medical Center. Total non-service-based payroll expenditures for Mercy San Juan Medical Center were approximately $0.3 million and represent 5% of the total Medicaid Cluster expenditures of approximately $6.5 million. Identification of a repeat finding: This is not a repeat finding. Recommendation: We recommend management execute its processes to properly approve all time charged to federal grants in accordance with 2 CFR 200.430. Additionally, we recommend management execute and retain evidence of its internal controls over the allowability of payroll expenditures. Views of responsible officials: Management agrees with the finding and will implement corrective action in April 2024.
Finding 2023-003 – Allowable Costs/Cost Principles Identification of the federal program: Health Resources and Services Administration HIV Emergency Relief Project Grants Assistance Listing No. 93.914 Pass Through Numbers Pass Through Entity Grant Period PH-002898 County of Los Angeles (1/1/2011 – 2/28/2023) PH-002375 County of Los Angeles (12/1/2012 – 6/30/2025) PH-003746 County of Los Angeles (12/1/2012 – 6/30/2025) PH-003802 County of Los Angeles (1/1/2013 – 6/30/2025) H-208518 County of Los Angeles (4/1/2006 – 7/31/2025) PH-004205 County of Los Angeles (6/1/2020 – 2/28/2023) 8198 PREV King County Public Health (3/1/2022 – 2/28/2023) 10126 PREV King County Public Health (3/1/2022 – 2/28/2024) St. Mary Medical Center – Long Beach Bailey-Boushay House Criteria or specific requirement (including statutory, regulatory, or other citation): 2 CFR 200.303(a) requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.430 (i) states “Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflected the work performed. These records must: (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) be incorporated into the official records of the non-Federal entity; (iii) reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; (iv) encompass both federal assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; (v) comply with the established accounting policies and practices of the non-Federal entity.” Condition: At St. Mary Medical Center – Long Beach, internal controls with regard to approving timecards were not performed for 3 of 40 employee timecards selected for testing. At Bailey-Boushay House, internal controls with regard to approving timecards were not performed for 6 out of 40 employee timecards selected for testing. Cause: St. Mary Medical Center – Long Beach and Bailey-Boushay House management did not consistently perform the necessary internal control procedures addressing the requirements of 2 CFR 200.303(a) and 2 CFR 200.430. Effect or potential effect: Unallowable and/or inaccurate payroll expenditures could be charged to the federal program. Questioned costs: None. Context: For 3 of 40 payroll expenditures selected for testing, St. Mary Medical Center – Long Beach did not properly approve the employee timecard for time charged to the grant in accordance with the practices of St. Mary Medical Center – Long Beach. For 6 out of 40 payroll expenditures selected for testing, Bailey-Boushay House did not properly approve the employee timecard for time charged to the grant in accordance with the practices of Bailey-Boushay House. Total payroll expenditures for St. Mary Medical Center – Long Beach were approximately $1.3 million and represent 32% of the total HIV Emergency Relief Project Grants expenditures of approximately $4.2 million. Total payroll expenditures for Bailey-Boushay House were approximately $1.1 million and represent 25% of the total HIV Emergency Relief Project Grants expenditures of approximately $4.2 million. Identification of a repeat finding: This is not a repeat finding for St. Mary Medical Center – Long Beach. This is a repeat finding for Bailey-Boushay House – Finding 2022-007 and 2021-008. Recommendation: We recommend management execute its processes to properly approve all time charged to federal grants in accordance with 2 CFR 200.430. Additionally, we recommend management execute and retain evidence of its internal controls over the allowability of payroll expenditures. Views of responsible officials: Management agrees with the finding and will implement corrective action in April 2024.
Finding 2023-003 – Allowable Costs/Cost Principles Identification of the federal program: Health Resources and Services Administration HIV Emergency Relief Project Grants Assistance Listing No. 93.914 Pass Through Numbers Pass Through Entity Grant Period PH-002898 County of Los Angeles (1/1/2011 – 2/28/2023) PH-002375 County of Los Angeles (12/1/2012 – 6/30/2025) PH-003746 County of Los Angeles (12/1/2012 – 6/30/2025) PH-003802 County of Los Angeles (1/1/2013 – 6/30/2025) H-208518 County of Los Angeles (4/1/2006 – 7/31/2025) PH-004205 County of Los Angeles (6/1/2020 – 2/28/2023) 8198 PREV King County Public Health (3/1/2022 – 2/28/2023) 10126 PREV King County Public Health (3/1/2022 – 2/28/2024) St. Mary Medical Center – Long Beach Bailey-Boushay House Criteria or specific requirement (including statutory, regulatory, or other citation): 2 CFR 200.303(a) requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.430 (i) states “Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflected the work performed. These records must: (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) be incorporated into the official records of the non-Federal entity; (iii) reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; (iv) encompass both federal assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; (v) comply with the established accounting policies and practices of the non-Federal entity.” Condition: At St. Mary Medical Center – Long Beach, internal controls with regard to approving timecards were not performed for 3 of 40 employee timecards selected for testing. At Bailey-Boushay House, internal controls with regard to approving timecards were not performed for 6 out of 40 employee timecards selected for testing. Cause: St. Mary Medical Center – Long Beach and Bailey-Boushay House management did not consistently perform the necessary internal control procedures addressing the requirements of 2 CFR 200.303(a) and 2 CFR 200.430. Effect or potential effect: Unallowable and/or inaccurate payroll expenditures could be charged to the federal program. Questioned costs: None. Context: For 3 of 40 payroll expenditures selected for testing, St. Mary Medical Center – Long Beach did not properly approve the employee timecard for time charged to the grant in accordance with the practices of St. Mary Medical Center – Long Beach. For 6 out of 40 payroll expenditures selected for testing, Bailey-Boushay House did not properly approve the employee timecard for time charged to the grant in accordance with the practices of Bailey-Boushay House. Total payroll expenditures for St. Mary Medical Center – Long Beach were approximately $1.3 million and represent 32% of the total HIV Emergency Relief Project Grants expenditures of approximately $4.2 million. Total payroll expenditures for Bailey-Boushay House were approximately $1.1 million and represent 25% of the total HIV Emergency Relief Project Grants expenditures of approximately $4.2 million. Identification of a repeat finding: This is not a repeat finding for St. Mary Medical Center – Long Beach. This is a repeat finding for Bailey-Boushay House – Finding 2022-007 and 2021-008. Recommendation: We recommend management execute its processes to properly approve all time charged to federal grants in accordance with 2 CFR 200.430. Additionally, we recommend management execute and retain evidence of its internal controls over the allowability of payroll expenditures. Views of responsible officials: Management agrees with the finding and will implement corrective action in April 2024.
Finding 2023-003 – Allowable Costs/Cost Principles Identification of the federal program: Health Resources and Services Administration HIV Emergency Relief Project Grants Assistance Listing No. 93.914 Pass Through Numbers Pass Through Entity Grant Period PH-002898 County of Los Angeles (1/1/2011 – 2/28/2023) PH-002375 County of Los Angeles (12/1/2012 – 6/30/2025) PH-003746 County of Los Angeles (12/1/2012 – 6/30/2025) PH-003802 County of Los Angeles (1/1/2013 – 6/30/2025) H-208518 County of Los Angeles (4/1/2006 – 7/31/2025) PH-004205 County of Los Angeles (6/1/2020 – 2/28/2023) 8198 PREV King County Public Health (3/1/2022 – 2/28/2023) 10126 PREV King County Public Health (3/1/2022 – 2/28/2024) St. Mary Medical Center – Long Beach Bailey-Boushay House Criteria or specific requirement (including statutory, regulatory, or other citation): 2 CFR 200.303(a) requires that a non-federal entity must “(a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States and the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).” 2 CFR 200.430 (i) states “Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflected the work performed. These records must: (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) be incorporated into the official records of the non-Federal entity; (iii) reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; (iv) encompass both federal assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity’s written policy; (v) comply with the established accounting policies and practices of the non-Federal entity.” Condition: At St. Mary Medical Center – Long Beach, internal controls with regard to approving timecards were not performed for 3 of 40 employee timecards selected for testing. At Bailey-Boushay House, internal controls with regard to approving timecards were not performed for 6 out of 40 employee timecards selected for testing. Cause: St. Mary Medical Center – Long Beach and Bailey-Boushay House management did not consistently perform the necessary internal control procedures addressing the requirements of 2 CFR 200.303(a) and 2 CFR 200.430. Effect or potential effect: Unallowable and/or inaccurate payroll expenditures could be charged to the federal program. Questioned costs: None. Context: For 3 of 40 payroll expenditures selected for testing, St. Mary Medical Center – Long Beach did not properly approve the employee timecard for time charged to the grant in accordance with the practices of St. Mary Medical Center – Long Beach. For 6 out of 40 payroll expenditures selected for testing, Bailey-Boushay House did not properly approve the employee timecard for time charged to the grant in accordance with the practices of Bailey-Boushay House. Total payroll expenditures for St. Mary Medical Center – Long Beach were approximately $1.3 million and represent 32% of the total HIV Emergency Relief Project Grants expenditures of approximately $4.2 million. Total payroll expenditures for Bailey-Boushay House were approximately $1.1 million and represent 25% of the total HIV Emergency Relief Project Grants expenditures of approximately $4.2 million. Identification of a repeat finding: This is not a repeat finding for St. Mary Medical Center – Long Beach. This is a repeat finding for Bailey-Boushay House – Finding 2022-007 and 2021-008. Recommendation: We recommend management execute its processes to properly approve all time charged to federal grants in accordance with 2 CFR 200.430. Additionally, we recommend management execute and retain evidence of its internal controls over the allowability of payroll expenditures. Views of responsible officials: Management agrees with the finding and will implement corrective action in April 2024.