Finding 1140415 (2022-009)

2022-009 Time Sheets for payroll cost allocations – Significant Weakness Condition: During testing of payroll transactions for 2022 and 2021, we noted that the timesheets are not set up to document the amount of time each employee spent on either program services or administrative tasks. Criteria: To ensure that time and effort by program is documented accurately, policies and procedures should be implemented requiring all employees complete their timesheets based on either the program services performed, time spent on non-program services, or administrative tasks. Cause: The Association’s policies and procedures do not require employees to account for their time spent on each program or task. Effect: When the employees do not document their time and effort by program or by task, external parties reviewing either financial reports or claims submitted for reimbursements cannot accurately determine the amount of time each employee spent on either a program or non-program activities. Also, expenses reported by program are not accurately reported. Recommendation: We recommend that the Association’s timesheets be updated to document time spent on either program activities or administrative activities. Management’s Response and Corrective Action Plan: Please see attached corrective action plan.