Finding Text
Per the County Department of Job and Family Services, payroll transmittal reports are prepared showing employee name, hourly rate, regular hours, overtime hours, on-call, and gross pay and then sent to the Auditor’s Office for payroll checks to be issued. The payroll transmittal reports are signed by the Director (or designee) to indicate approval. Evidence of this approval on the payroll transmittal reports are necessary to acknowledge that the expenditures are allowable, per specific grant regulations, and are compliant with Uniform Guidance requirements contained in Subpart E of 2 CFR part 200 and Subpart E of 45 CFR part 75.
Due to the lack of the control procedures over the review of payroll expenditures, three out of sixty (5%) of employees tested did not have a payroll transmittal report that had evidence of review and approval by the Department of Job and Family Services Director (or designee).
This weakness could result in unallowable expenditures (employees) being charged to programs administered by the County Department of Job and Family Services.
Formal written procedures should be developed, implemented, and consistently applied to the approval of federal grant expenditures prior to payment. Procedures should include how approvals by management or administrators are documented for each expenditure and the approvals should be done by personnel knowledgeable about the federal program. Implementing a formal control process with help ensure only allowable expenditures are made using federal grant funds.