Finding Text
Condition and Criteria: If an employee was designated as part of the “CDC department”, all of their sick, holiday and vacation hours were charged to the grant as direct labor. Questioned Cost: $28,145. Cause: The Organization was unaware that only actual hours worked on the grant should be charged to the grant as direct labor and that “indirect” labor is captured in the fringe benefit rate. Effect: Sick, holiday and vacation wages were incorrectly charged to the grant. Auditor’s Recommendation: The Organization should develop and implement policies and procedures to ensure that only actual hours spent working on the grant are charged to the grant as direct labor. Views of Responsible Officials and Planned Corrective Action: Quincy Asian Resources, Inc. agrees with the finding and will develop and implement policies and procedures to ensure that only actual hours spent working on the grant are charged to the grant as direct labor. The Organization is transitioning to a new Time & Attendance system, which will address these issues.