Finding Text
Condition: Amount of salaries allocated to federal programs are not consistently supported by employee timesheets or other similar documentation. We noted 20 of the 37 paychecks tested were not supported by relevant timesheets or reconciliations.
Criteria: Internal controls should be in place that provide reasonable assurance that salaries for employees charged to federal programs are appropriately documented and reconciled.Cause: There are limited procedures in place that require reconciliation of actual hours expended to the program.
Effect: Since employee salaries were not reconciled to corresponding timesheets, it is possible that employees' time and related costs may be inappropriately allocated amongst functional activities, including cost allocations to federal awards programs. This could result in noncompliance with the Uniform Guidance.
Recommendation: Existing timesheet reconciliation procedures should be revised. The Organization should reconcile employee timesheets to amounts allocated to the grants on, at minimum, a quarterly basis, and ideally, on a monthly basis prior to the submission of vouchers or funding requests.Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.