Finding 1136122 (2024-002)

Criteria: 2 CFR 200.303(a) and 45 CFR 1635 establishes that recipients must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. One of the Organization’s internal controls for ensuring such compliance is that each employee’s supervisor reviews and approves all time and attendance reports. Condition: During our audit we noted one timesheet out of a sample of 40 that did not have documentation of review by the employee’s supervisor. Cause: There was a lapse in the internal control process to ensure documentation of timely and proper review of timesheets. Effect: Lack of timesheet review by a supervisor who is familiar with a given employee’s responsibilities could result in charges to federal awards that are in excess of what was actually earned, or incorrect allocations of expenditures to various awards. Questioned Costs: None Recommendation: We recommend the Organization review payroll policies and procedures with applicable employees to ensure compliance with documented procedures.