Finding 1106315 (2024-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-03-25
Audit: 347902
Organization: The Registry, Inc. (WI)
Auditor: Wegner CPAS LLP

AI Summary

  • Core Issue: The Registry, Inc. failed to obtain necessary documentation for employee time and effort related to federal awards.
  • Impacted Requirements: This violates Title 2 U.S. CFR section 200.303, which mandates effective internal controls over federal awards.
  • Recommended Follow-up: Implement written policies for documenting employee time spent on grant activities to ensure compliance and support costs.

Finding Text

Assistance Listing Number(s): 93.575 Name of Federal Program or Cluster: CCDF Cluster Name of Federal Agency: Department of Health and Human Services Name of Pass-through Entity: Minnesota Department of Human Services Award Period: 7/1/2020-6/30/2024 and 7/1/2024-6/30/2026 Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) section 200.303 requires non-federal entities to establish and maintain effective internal control over federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Condition: The Registry, Inc. did not obtain support from the employee for time and effort used as the basis for allocating personnel costs to federal awards. Cause: The Registry, Inc. did not properly design policies and procedures to ensure time and effort reporting is maintained by employees, adequately and contemporaneously documented, and reviewed by supervisors or managers. Effect or Potential Effect: Costs not supported by adequate documentation could be disallowed. Repeat Finding: No. Recommendation: The Registry, Inc. should obtain time and effort documentation that supports the distribution of the employee's salary or wages among specific activities. The Registry, Inc. should design and implement written policies and procedures for personnel to document time spent on grant activities for every pay period, or monthly at a minimum. Views of Responsible Officials: The Registry, Inc. will implement written policies and procedures for personnel to document time spent on grant activities.

Categories

Subrecipient Monitoring Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 529873 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $121,275