Finding Text
Finding 2024‐001: Allowable Cost – Significant deficiency in internal controls over compliance
and compliance finding. Criteria: The Center’s internal control procedures over compliance specify that all employees who
are not fully charged to the grant maintain timesheets to track the time and effort charged to the
grant. The amounts allocated to grant activities then agrees to amounts charged to the grant.
Condition: During the allowable cost testing for federal grants, 3 out of 26 timesheets tested did
not agree to the allocation of payroll charged to the grant. Additional fringe benefits were
charged to the grant based on allocations that did not agree to actual time and effort reported
on the employee’s timesheet.
Effect: The Center’s reporting of grant time and effort was not fully documented in accordance
with internal control over compliance procedures.
Questioned Cost: None
Recommendation: Management should ensure all timesheets are completed and agree to the
reimbursement requests for the period. Any changes to the employees timesheet and time and
effort towards the grant should be documented and approved prior to the reimbursement
requests.