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