Finding Text
Finding 2024-001 – U.S. Department of Commerce (significant deficiency):
Information on the federal program: Connecting Minority Communities (CMC) in Smith
County, FAL No. 11.028, June 30, 2024
Criteria – Federal regulations governing Connecting Minority Communities programs.
Condition – Noncompliances were noted, as more fully described in the context below.
Questioned Costs – $13,309
Context – We noted the following in connection with our compliance testing of time and effort
reports:
a) We noticed that nine (9) of 18 time and effort reports tested had incomplete and/or inaccurate
percentage calculations.
b) Personnel Action Forms provided for six (6) of 18 time and effort reports did not specify pay
allocations for employee salaries to the grant.
c) The employee signature on three (3) time and effort reports provided for one (1) employee did
not appear authentic.
d) Three (3) time and effort reports provided for one (1) employee were not approved by a
supervisor.
e) One (1) time and effort report and corresponding payroll register specified salaries chargeable
to a different grant but the expense was charged to the Connecting Minority Communities
(CMC) grant.
Cause – Oversight by responsible employees.
Effect – Unallowable cost could have been charged to the grant.
Repeat Finding – No.
Auditor’s Recommendation – The College should implement corrective actions to ensure that
the above findings are resolved and will not recur in future periods.