Finding Text
Condition:
The Organization does not maintain time and effort reports to support time allocations for salaried employees who are charged to the federal grant.
Criteria:
In accordance with 2 CFR section 200.430(g) charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed.
Cause:
The Organization does not maintain time and effort reports to support allocations of salaried employees charged to the grant.
Effect:
With no time and effort reporting, the allocations for salaried employees for a particular pay period are not supported.
Context:
Of 25 payroll transactions tested from a population of approximately 300 transactions, we noted that payroll and related costs of $8,999 for four administrative employees were allocated to the grant, but those costs were not supported by time records or time studies. Upon further analysis of payroll costs, a total of $177,140 was determined to have been allocated to the grant for administrative employees but not supported by time records or time studies.
Questioned Costs:
Potential questioned costs of approximately $177,140.
Recommendation:
We recommend that management review controls over employee time reporting and determine an appropriate form to document time and effort for each pay period. This should include appropriate documentation of the employees time allocation between program and administrative duties based on work performed. These time and effort reports should be reviewed and approved by the employee’s direct supervisor or the Executive Director.
Views of Responsible Officials and Planned Corrective Action:
Management stated they will purchase a professional time tracking software program to help all employees track their work hours and activities.