Finding Text
DEPARTMENT OF HEALTH AND HUMAN SERVICES
2023-003
Immunization Cooperative Agreements, ALN #93.268
Criteria: According to 2 CFR 200.430 i(i)(vii) charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and there should be support to the distributions of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award.
Condition: In gaining our understanding of controls over allowable costs for payroll, we noted that the Organization did not have proper documentation of time and effort analysis to support charges to the grants. Cause: The Organization used the grant budget to charge salaries to the grant but did not have any documentation showing an analysis of actual time worked on those grants.
Effect: The hours charged to a program could be under stated or overstated if the actual hours differed from the grant budget hours.
Auditor’s Recommendation: We recommend implementing the use of time sheets with grants or personnel activity reports that document actual hours worked by personnel on each grant.
Management Response: Management will implement time sheets for all employees that work on grants that specify what grants they are working on, number of hours for each for all payrolls in 2024 to correct this problem going forward. In addition, the timesheets will include what functions those