Finding 1056956 (2023-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-08-06
Audit: 316706
Organization: Perkasie Regional Authority (PA)
Auditor: Marcum LLP

AI Summary

  • Core Issue: Payroll costs for two Authority employees were charged to the grant without accurately tracking actual hours worked.
  • Impacted Requirements: The grant requires specific allocation of payroll based on actual time incurred, not just an even distribution.
  • Recommended Follow-Up: Implement a system for tracking and documenting actual hours worked by all employees charged to the grant.

Finding Text

The approved budget for the grant included two Authority employees both of which are salaried employees. During the audit procedures performed for testing payroll charged as direct cost reimbursement for the grant award, the auditors noted that the Authority allocated the approved budgeted payroll evenly throughout the year to the grant versus specifically identifying and allocating actual time incurred on the grant as a reimbursement request. One of the employees did have a timesheet and did indicate time was incurred on the grant but no actual hours were quantified on the timesheet. The other Authority employee does not complete a timesheet as the individual is in an administrative function. There was no timesheet for this employee. The total payroll charged to the grant award was below the questioned cost threshold.

Categories

Cash Management

Other Findings in this Audit

  • 480512 2023-001
    Material Weakness
  • 480513 2023-002
    Material Weakness
  • 480514 2023-003
    Significant Deficiency
  • 1056954 2023-001
    Material Weakness
  • 1056955 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
66.468 Capitalization Grants for Drinking Water State Revolving Funds $3.31M