Finding 1076219 (2023-001)

Federal Award Findings and Questioned Costs Finding No. 2023-001: Allowable Cost (Time and effort) Federal Program Title: U.S. Department of Health and Human Services Awards: ALN 93.224 Health Center Program Cluster ALN 93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response Criteria: 2 CFR 200.430 established that all salaries and wages charged to Federal awards must be supported by a system of internal controls that provides reasonable assurance that the personnel costs incurred are accurate, allowable, and properly allocated. This includes a system to demonstrate that total compensation paid to individual employees is reasonable according to the work performed. Condition: During audit procedures, we tested 40 payroll costs charged to the ALN 93.224 Health Center Program Cluster and 40 payroll costs charged to ALN 93.354 Public Health Emergency Response: Cooperative agreement for Emergency Response: Public Health Crisis Response. Time and effort reporting could not be located for any of the charges which documented the distribution of the employee’s salary and wages among specific grants by work performed. Cause: The Organization changed payroll systems during the year and did not implement procedures to properly track time and effort under the new system. Effect: The federal award may be overcharged or undercharged if actual effort differs from time charged to the award. Questioned Costs: Unknown Repeat Finding: No Recommendation: Management should establish policies and procedures that are consistent with the Uniform Guidance administrative requirements with regards to compensation and allowable costs which includes ensuring time and effort charges are based on records that accurately reflect the work performed. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding.