Finding Text
Material Weakness
Federal Program(s): Research and Development Cluster
Mental and Behavioral Health Education and Training Grants
Assistance Listing Number(s):
Research and Development Cluster
• 11.417
• 12.420
• 12.905
• 84.116Z
• 84.019A
• 47.076
• 47.050
Mental and Behavioral Health Education and Training Grants
• 93.732
Criteria: Auditee requirements contained in Title 2 U.S. Code of Federal Regulations (2 CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart D – Post Federal Award Requirements, Section 200.303 – Internal Controls, requires the auditee to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with a framework such as the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition: Timesheets and time and effort reports used to track time spent on federal programs did not have approval signatures by the employee’s supervisor.
Cause: Ineffective design and implementation of internal controls around approval of timesheets and time and effort reports.
Effect or Potential Effect: Ineffective control procedures could result in unallowable costs or activities being charged to federal grant programs.
Questioned Costs: None
Context: In our sample of 10 payroll transactions of amounts charged to the Research and Development Cluster, 9 of the timesheets or time and effort reports did not have physical indication of review by their supervisors. In our sample of 6 payroll transactions of amounts charged to the Mental and Behavioral Health Education and Training grants, none of the timesheets or time and effort reports had physical indication of review by their supervisors.
Repeat Finding: No
Recommendation: We recommend the College enforce its policy to have physical signatures on each employee’s timesheet or time and effort report after the review takes place to ensure salary costs charged to the federal program are allowable.
Views of Responsible Officials: Management agrees with the finding. See corrective action plan.