Finding 1056480 (2023-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2024-07-31

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance, specifically in tracking employee time for federal grants.
  • Impacted Requirements: Timesheets did not accurately reflect time allocable to federal programs, violating 2 CFR 200.430(i).
  • Recommended Follow-Up: Implement a system to track time for federal programs and establish internal controls for reviewing and approving timesheets.

Finding Text

Department of Health and Human Services Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558 Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054 Type of Finding: Material Weakness in Internal Control over Compliance with Federal Awards and Material Noncompliance Criteria: The Organization should have effective internal controls in place over tracking of employee time to federal grants and contracts, for the Activities allowed/Allowable costs compliance requirement, per 2 CFR 200.430(i). Condition: During the FY 2023 audit, it was noted that while employee timesheets were maintained, the timesheets did not document time allocable to federal programs for Q1 and the first month of Q2 (October 2022). Rather, timesheets related to the federal program reflected a percentage allocation equal to or less than the approved budget. Context: Out of the 25 samples that were tested, 9 did not have proper coding in the timesheet. The sample was not intended to be, and was not, a statistically valid sample. Cause/Effect: Internal control processes over payroll did not detect that employee timesheets did not appropriately capture time specifically chargeable to federal programs. Questioned Costs: $82,253, which was comprised of payroll charges to BEN TANF program for the time allocable to federal programs for Q1 and the first month of Q2 (October 2022). Identification of Repeat Finding: Repeat Finding 2022-001 Recommendation: We recommend that Cornerstones implements a system to properly track time charged to federal programs. In addition, we recommend that management implements internal controls to review and ensure that employee timesheets possess contemporaneous documentation of time spent on individual federal programs. Timesheets should be reviewed and approved in writing by employees’ supervisors. Views of Responsible Officials and Correction Action: Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 480038 2023-001
    Material Weakness Repeat
  • 480039 2023-002
    Significant Deficiency Repeat
  • 480040 2023-004
    Material Weakness Repeat
  • 480041 2023-004
    Material Weakness Repeat
  • 480042 2023-004
    Material Weakness Repeat
  • 480043 2023-003
    Material Weakness Repeat
  • 480044 2023-001
    Material Weakness Repeat
  • 480045 2023-002
    Significant Deficiency Repeat
  • 480046 2023-003
    Material Weakness Repeat
  • 480047 2023-004
    Material Weakness Repeat
  • 480048 2023-004
    Material Weakness Repeat
  • 1056481 2023-002
    Significant Deficiency Repeat
  • 1056482 2023-004
    Material Weakness Repeat
  • 1056483 2023-004
    Material Weakness Repeat
  • 1056484 2023-004
    Material Weakness Repeat
  • 1056485 2023-003
    Material Weakness Repeat
  • 1056486 2023-001
    Material Weakness Repeat
  • 1056487 2023-002
    Significant Deficiency Repeat
  • 1056488 2023-003
    Material Weakness Repeat
  • 1056489 2023-004
    Material Weakness Repeat
  • 1056490 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $3.70M
14.218 Community Development Block Grants/entitlement Grants $375,916
14.231 Emergency Solutions Grant Program $252,174
93.558 Temporary Assistance for Needy Families $84,333
97.024 Emergency Food and Shelter National Board Program $74,338
10.558 Child and Adult Care Food Program $39,999
14.169 Housing Counseling Assistance Program $18,237