Finding Text
Allowable Costs - Lack of Management Oversight to Ensure Retention
of Timesheets – Material Weakness in Internal Control Over Compliance
Criteria
In accordance with the Uniform Guidance, the costs charged to federal funds must comply with
the cost principles of 45 CFR Part 75, Subpart E, and any other requirements or restrictions on the
use of federal funding.
Condition and Context
The Health Center was unable to locate timesheets for 5 out of 40 selections for payroll control
testing.
Cause
Staff turnover in the Finance Department coupled with inadequate controls to ensure that the
historical payroll records are maintained.
Effect
Time charges to the federal award may have been improper leading to inaccurate information being
charged through the awards.
Questioned Costs
$21,317.
Repeat Finding
No.
Recommendation
We recommend that management implement procedures to ensure that timesheets and related
approvals are adequately maintained and supported.
Views of Responsible Officials and Planned Corrective Action
See corrective action plan.