Finding Text
Finding Number 2024-002: Timesheet versus Time Study Hours (Significant Deficiency in Internal Control over compliance – Allowable Costs/Cost Principles)
FALN Number 93.778; Federal Agency/Pass-through Entity – Program Name Alameda Health Care Services Agency - Medical Assistance Program (Medi-Cal Administrative Activities); Award Number MAA MOU 2023-2024; Award Year 2023-2024
Criteria: 2024 Compliance Supplement and 2 CFR 200.303(a) stated that the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award.
Condition/Context: As a result of our audit procedures, we noted 1 of 40 timesheets tested in which the hours on the employee’s timesheet did not agree to the hours reported on the time study as the time study was not prepared for an employee.
Repeat Finding from Prior Year(s): Yes, Finding Number 2023-002
Cause and Effect: The Health System did not have proper controls in place to ensure hours reported on the timesheet agree to the hours on the time study and that a time study is properly prepared, which could lead to inaccurate hours being reported and disbursed to employees.
Questioned Cost: None
Recommendation: We recommend management review policies and procedures to ensure the hours reported on the timesheet agree to the hours on the time study, and to ensure a time study is properly prepared and retained.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. The Health System finalized the standard work procedures titled, Internal Controls for Proper Verification, which include procedures to ensure reported timesheet hours agree to hours on the time study and costs incurred are appropriately charged based on the contracts’ performance periods. Staff is implementing policy in fiscal year 2025."