Finding 1142275 (2023-103)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2025-06-23
Audit: 359538
Organization: Human Services Campus, INC (AZ)

AI Summary

  • Core Issue: Payroll charges do not reflect actual work performed, with 14 out of 35 employees not fully charged to the program.
  • Impacted Requirements: Lack of detailed documentation, such as timesheets, violates Uniform Guidance 2 CFR 200.430.
  • Recommended Follow-Up: Implement policies to ensure payroll costs are based on actual time and supported by proper records.

Finding Text

Criteria: The Uniform Guidance, 2 CFR 200.430, requires that payroll charges be based on actual costs incurred and accurately reflects the work performed. Further, documentation must be maintained that supports payroll related costs that are allocated to more than one federal program or to a federal program and nonfederal programs. Condition: We selected thirty-five payroll transactions charged to the program with thirty-five different employees. Of these thirty-five transactions, the Organization did not charge 100% of the employees’ payroll to the program for fourteen employees, indicating that the remaining amount was charged to other federal and nonfederal programs. The Organization did not maintain detailed timesheets or time studies to support the actual time spent on the activities funded by the Coronavirus State and Local Fiscal Recovery Funds program that corresponded to the percentage of time charged to this program for each employee. Our sample of payroll transactions totaled $41,701 charged to the program of the total wages of these employees for these pay periods selected of $59,886. Cause and Effect: The Organization has not implemented procedures that require payroll costs that are allocated to multiple programs be supported by detailed documentation (such as timesheets or recent time studies) supporting the allocation. As a result, costs could be charged to federal programs that do not coincide with actual work performed by the employee. Auditors’ Recommendations: The Organization should establish policies to ensure that payroll costs charged to multiple departments or programs be based on actual time incurred by each employee and that the allocation be supported by time and attendance records.

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 565827 2023-101
    Significant Deficiency
  • 565828 2023-101
    Significant Deficiency
  • 565829 2023-102
    Material Weakness
  • 565830 2023-103
    Material Weakness
  • 565831 2023-101
    Significant Deficiency
  • 565832 2023-102
    Material Weakness
  • 565833 2023-103
    Material Weakness
  • 1142269 2023-101
    Significant Deficiency
  • 1142270 2023-101
    Significant Deficiency
  • 1142271 2023-102
    Material Weakness
  • 1142272 2023-103
    Material Weakness
  • 1142273 2023-101
    Significant Deficiency
  • 1142274 2023-102
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.00M
14.267 Continuum of Care Program $552,598
93.959 Block Grants for Prevention and Treatment of Substance Abuse $193,374
14.231 Emergency Solutions Grant Program $88,745