Finding Text
Condition: Amount of salaries allocated to federal programs are not consistently supported by employee timesheets or other similar documentation. Criteria: Internal controls should be in place that provide reasonable assurance that salaries for employees charged to federal programs are appropriately documented and reconciled. Cause: There are limited procedures in place that require reconciliation of actual hours expended to the program. Effect: Since employee salaries were not reconciled to corresponding timesheets, it is possible that employees' time and related costs may be inappropriately allocated amongst functional activities, including cost allocations to federal awards program. This could result in noncompliance with the Uniform Guidance. Context: This condition occurred in 5 out of 60 payroll transactions selected for testing. Total payroll transactions charged to the program were $532,634, of which $87,162 were selected for testing, representing 30 different employees.
Recommendation: Existing timesheet reconciliation procedures should be revised. The organization should reconcile employee timesheets to amounts allocated to the grants on, at minimum, a quarterly basis, and ideally, on a monthly basis prior to the submission of vouchers or funding requests.
Views of Responsible Officials and Planned Corrective Actions: The Organization will review its procedures and make appropriate changes. The Organization accepts the recommendation.