Finding 1131793 (2024-002)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-04-18

AI Summary

  • Core Issue: The Organization improperly charged personnel expenses to federal awards without proper documentation of time worked.
  • Impacted Requirements: Personnel expenses must be supported by records reflecting actual time and effort spent on the program.
  • Recommended Follow-Up: Implement a time and effort tracking system and provide training to ensure compliance with federal requirements.

Finding Text

Finding # 2024-002 Type: Material weakness Type: Material noncompliance over allowable costs A.L. Number: 14.218 and 21.027 Requirement: Personnel expenses charged to federal awards must be supported by records that reflect the time worked charged to the award. Condition: The Organization charged personnel expenses based on approved budgeted amounts in the award agreement. Context: Certain personnel time was charged to the award without documentation to support time and effort spent on the program (12 of 64 tested). Cause: Organization personnel were not aware of the time and effort tracking requirements for federal awards. Effect: Personnel costs could be charged to program for 1) work that was not performed on the program and 2) expenses covered by another funding source. Questioned Costs: Unknown Recommendation: We recommend the Organization implement a time and effort system to track employee time by program or funding source. This is typically done in a timesheet format that tracks all time worked by an employee, including programmatic and administrative time. Management’s Response: Management will carry out additional training with employees on tracking time as well as develop an improved timesheet process. Management also will implement a new payroll system to ensure integration with the accounting system.

Categories

Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 555350 2024-002
    Material Weakness
  • 555351 2024-002
    Material Weakness
  • 555352 2024-002
    Material Weakness
  • 555353 2024-002
    Material Weakness
  • 555354 2024-002
    Material Weakness
  • 555355 2024-002
    Material Weakness
  • 555356 2024-003
    Material Weakness
  • 555357 2024-003
    Material Weakness
  • 555358 2024-003
    Material Weakness
  • 555359 2024-003
    Material Weakness
  • 555360 2024-003
    Material Weakness
  • 555361 2024-003
    Material Weakness
  • 555362 2024-004
    Significant Deficiency
  • 555363 2024-004
    Significant Deficiency
  • 555364 2024-004
    Significant Deficiency
  • 555365 2024-004
    Significant Deficiency
  • 555366 2024-004
    Significant Deficiency
  • 555367 2024-004
    Significant Deficiency
  • 555368 2024-002
    Material Weakness
  • 555369 2024-002
    Material Weakness
  • 555370 2024-002
    Material Weakness
  • 555371 2024-003
    Material Weakness
  • 555372 2024-003
    Material Weakness
  • 555373 2024-003
    Material Weakness
  • 1131792 2024-002
    Material Weakness
  • 1131794 2024-002
    Material Weakness
  • 1131795 2024-002
    Material Weakness
  • 1131796 2024-002
    Material Weakness
  • 1131797 2024-002
    Material Weakness
  • 1131798 2024-003
    Material Weakness
  • 1131799 2024-003
    Material Weakness
  • 1131800 2024-003
    Material Weakness
  • 1131801 2024-003
    Material Weakness
  • 1131802 2024-003
    Material Weakness
  • 1131803 2024-003
    Material Weakness
  • 1131804 2024-004
    Significant Deficiency
  • 1131805 2024-004
    Significant Deficiency
  • 1131806 2024-004
    Significant Deficiency
  • 1131807 2024-004
    Significant Deficiency
  • 1131808 2024-004
    Significant Deficiency
  • 1131809 2024-004
    Significant Deficiency
  • 1131810 2024-002
    Material Weakness
  • 1131811 2024-002
    Material Weakness
  • 1131812 2024-002
    Material Weakness
  • 1131813 2024-003
    Material Weakness
  • 1131814 2024-003
    Material Weakness
  • 1131815 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.020 Community Development Financial Institutions Program $391,600
59.046 Microloan Program $310,383
21.027 Coronavirus State and Local Fiscal Recovery Funds $156,276
59.050 Prime Technical Assistance $61,276
14.218 Community Development Block Grants/entitlement Grants $1,781