Finding 1091068 (2023-003)

Finding 2023‐003: Allowable costs – Significant deficiency over internal controls over compliance and compliance finding. Coronavirus State and Local Fiscal Recovery Funds ALN 21.027. Criteria:  The  Uniform  Guidance  requires  that  costs  be  adequately  documented.  The  Organization’s internal control procedures over compliance specify that all employees’ timesheets and hours agree to the payroll register and to the amount allocated to grant activities. Condition: During allowable cost testing for federal grants, for 1 of the 25 payroll transactions tested, the amount of time charged to the grant did not agree to the employee's timesheet. The amount of time that was charged to the grant was greater than what was approved to be charged to the grant per the employee’s timesheet hours and grant budget allocations. Cause: This was due to a input error with the employees percentage charged to the grant for the year. Effect: The employee’s payroll was not accurately allocated to the grant based on actual time and effort. Questioned costs: None. Recommendation: Hours worked towards the grant on the approved timesheet should be used to  determine  how  much  of  the  employee’s  time  is  charged  to  the  grant.  Requests  for  reimbursement should reviewed in detail to ensure all payroll costs are properly supported by time sheets. Management’s response: See corrective action plan.