Finding Text
2023-002 AL 93.671: Time and Effort Reporting – Material Weakness
Criteria
A key control surrounding the payroll disbursement process is the allocation of time based on
time and effort reports to grants.
Condition
During the year, it was noted there was a methodology change for allocating payroll expenses
to grants. It was also noted that timesheets for the year under audit were not available due to a
change in payroll processors.
Cause
Supporting documentation was not available for review during the audit.
Effect
Approved timesheets showing hours spent per grant were not available for review.
Questioned Costs
$919
Context
In 2023, there was a change in payroll processors. The total amount paid for payroll
disbursements chosen for sampling was $24,721. Out of this amount, we were able to
substantiate $23,802 of payroll disbursements.
Recommendation
We recommend that all approved timesheets be kept on a local server and documenting the
methodology for allocating payroll expenses that are reimbursed by grant funds.
View of Responsible Officials and Planned Corrective Actions
The Abused Adult Resource Center’s payroll allocations for grants will be documented on
timesheets and the hard copies will be filed or scanned onto a local drive kept by the Center.
Indication of Repeat Finding
This is a new finding in the current year.