Finding Text
Finding Number 2023-002: Timesheet vs. Time Study Hours (Significant Deficiency over Internal Control
and Instance of Noncompliance – Allowable Costs/Cost Principles) FALN Number 93.778 Alameda Health Care Services Agency - Medical Assistance Program (Medi-Cal Administrative Activities), Award Number MAA MOU 2022-2023, Award Year 2022-2023
Criteria: 2023 Compliance Supplement and 2 CFR 200.403(h) stated that a non-federal entity may charge only
allowable costs incurred during the approved budget period of a federal award’s period of performance.
Condition/Context: As a result of our audit procedures, we noted 1 of 40 timesheets tested in which the hours on
the employee’s timesheet did not agree to the hours reported on the time study. We identified 2.5 hours of
steward leave being reported on the timesheet but not the time study.
Repeat Finding from Prior Year(s): No
Cause and Effect: The Health System did not have proper controls in place to ensure hours reported on the
timesheet agree to the hours on the time study, which could lead to inaccurate hours being reported and
disbursed to employees.
Questioned Cost: None
Recommendation: We recommend management review policies and procedures to ensure the hours reported
on the timesheet agree to the hours on the time study.
Views of Responsible Officials and Planned Corrective Action:
Management agrees with the finding. The Health System will review, modify, and implement policies and
procedures over the program to ensure that costs incurred are appropriately charged based on the contracts’
performance periods.