Finding 1074080 (2024-004)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2024-09-23
Audit: 320434
Auditor: Terry Horne CPA

AI Summary

  • Core Issue: Monthly time/activity reports for salaried employees are not being maintained, violating federal requirements.
  • Impacted Requirements: This affects compliance with Uniform Guidance and federal cost principles under 45 CFR, 75.430.
  • Recommended Follow-Up: Revise policies to mandate time and effort documentation monthly, aligning with payroll cycles, and implement procedures to ensure compliance.

Finding Text

Finding: 2024-004 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Cluster Assistance Listing No. 93.527 Criteria: Uniform Guidance Compliance Supplement, Grant Policy Statements, 45 CFR, 75.430 Condition: Time/activity reports (time sheets) are not maintained for salaried employees as required by federal cost principles. Cause: The Organization’s policy does not require that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle (at least on a monthly basis). Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds. Questioned Costs: None Context/Sampling: A test of payroll disbursements revealed that time and effort certifications for salaried employees were not maintained. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: The Organization should evaluate and revise its policies to ensure that the policies require personnel to document time and efforts in accordance with federal cost principles. Procedures should subsequently be established to ensure that all salaried employees maintain time and effort reports in accordance with the revised policy. It is recommended that time and effort certifications be prepared no less than monthly and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Policies and procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Mark Rajkowski, CEO Anticipated Date of Completion: October 31, 2024

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 497634 2024-002
    Material Weakness
  • 497635 2024-002
    Material Weakness
  • 497636 2024-003
    Material Weakness
  • 497637 2024-003
    Material Weakness
  • 497638 2024-004
    Material Weakness
  • 497639 2024-004
    Material Weakness
  • 1074076 2024-002
    Material Weakness
  • 1074077 2024-002
    Material Weakness
  • 1074078 2024-003
    Material Weakness
  • 1074079 2024-003
    Material Weakness
  • 1074081 2024-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $101,343
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated and State Partnership Marketplaces $48,114
93.800 Organized Approaches to Increase Colorectal Cancer Screening $18,750