Finding 1094791 (2021-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2021
Accepted
2025-01-09

AI Summary

  • Core Issue: Salaries for federal programs lack consistent support from employee timesheets, leading to potential misallocation of costs.
  • Impacted Requirements: Internal controls must ensure salaries are documented and reconciled to comply with federal guidelines.
  • Recommended Follow-Up: Revise timesheet reconciliation procedures to ensure monthly or quarterly checks before submitting funding requests.

Finding Text

Condition: Amount of salaries allocated to federal programs are not consistently supported by employee timesheets or other similar documentation. We noted a significant amount of paychecks tested were not supported by relevant timesheets or reconciliations. 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 programs. This could result in noncompliance with the Uniform Guidance. 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.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 518349 2021-001
    Material Weakness Repeat
  • 518350 2021-002
    Material Weakness
  • 518351 2021-003
    Significant Deficiency Repeat
  • 1094792 2021-002
    Material Weakness
  • 1094793 2021-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.002 Adult Education - Basic Grants to States $680,748
84.173 Special Education_preschool Grants $510,805