Finding Text
Criteria: Under the Uniform Guidance, specifically 2 CFR 200.430, charges to federal
awards for salaries and wages must be based on records that accurately reflect the
work performed.
Condition: Documentation for exempt employees' hours was unavailable or incomplete.
Cause: Management lacks policy over tracking time on the timesheet for the exempt
employees. Since exempt employees are compensated monthly, it is not required
for the exempt employees to record time in their timesheet.
Effect or potential effect: During our testing over payroll, we noted $3,875 of exempt employee salary
expense that was not supported with accurate time records. This amount projects
to a possible total error of $91,107.
Questioned cost: $91,107
Recommendation: We recommend that management to regularly review the actual hours that
exempt employees worked to determine the amount of time that’s being allocated
by the exempt employees represent accurate estimated hours.
Views of responsible officials: Behavioral Health Services, Inc. acknowledges the finding identified in the 2022
Single Audit and is committed to addressing the issue to ensure compliance and
improve internal controls. The following corrective actions will be implemented:
- Review and Assessment: We have conducted a thorough review of the finding
to understand its root cause and identify areas for improvement.
- Policy and Procedure Enhancements: We will update relevant policies or
procedures to strengthen systems and prevent recurrence.
Views of responsible officials:
- Training and Education: Employees involved in the process will undergo
additional training to ensure they fully understand compliance requirements and
best practices.
- Monitoring and Oversight: Management will implement regular monitoring and
periodic internal audits to ensure continued compliance and effectiveness of the
corrective actions.