Finding Text
Finding 2023-004 - Activities Allowed or Unallowed and Allowable Costs/Cost Principles – Significant Deficiency
Name of Federal Agency: U.S. Department of Health and Human Services
Federal Program Name(s): Health Center Program Cluster - Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care and COVID-19 - Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care and Grants for New and Expanded Services Under the Health Center Program and COVID-19 - Grants for New and Expanded Services Under the Health Center Program
Assistance Listing Numbers: 93.224 and 93.527
Federal Award Identification Number(s) and Year(s): H8F4083 - 2021, H8000626 - 2022, H8G48366 - 2022
Criteria
In accordance with 2 CFR Section 200.303, Internal controls, the non-Federal entity must: (a) establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in "Standards for Internal Control in the Federal Government" issued by the Comptroller General of the United States or the "Internal Control Integrated Framework", issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition
During our audit, we noted that there was no evidence, such as a signature, evidencing review and approval by a direct supervisor of the timesheets and time and effort reports.
Cause
There is no formal policy requiring timesheets and time and effort reports be approved by a direct supervisor and evidence of approval retained.
Effect or Potential Effect
The condition could result in inaccuracies in the allocation of salaries to the federal grants.
Questioned Costs
None.
Context
Two exceptions from a statistically valid sample of two.
Identification as Repeat Finding
No.
Recommendation
We recommend that management put in place a formal policy requiring all timesheets and time and effort reports be approved by a direct supervisor and that evidence of that approval be retained.
Views of Responsible Officials
Effective immediately, a time and effort reporting policy was implemented and sent to all staff to ensure that staff follow the process. This policy will be reviewed with all new staff during new hire orientation and annually. Timesheets will be reviewed and approved by direct supervisors on a weekly basis. HR will send a reminder to all staff on a weekly basis to complete all missing time worked. Employees are responsible for updating the timesheet for each work week in Paylocity. HR will provide a monthly time and effort report to the finance team. This report will provide total number of hours worked by each employee for each assigned cost center.