Finding Text
Criteria: Time and effort requirements state that employee time must be maintained with sufficient
documentation to provide for appropriate allocation to the federal program. Time and effort requirements
are outlined in 2 CFR 200.430.
32
Condition: Payroll charges for the grant were based on a percentage of time by employee. This
percentage was based on management’s decision and set when budgeting; the percentage charged to the
grant was not based on actual hours worked.
Cause: Payroll was processed by an outside service provider based on information provided by
management. Management did not require the breakdown of hours as it relates to the federal programs
which were being charged. Management was unaware of this time and effort requirement.
Effect or potential effect: The costs submitted for reimbursement under the grant may not be appropriate.
The failure to report time appropriately and allocate by program could increase the risk of errors in
amounts reported as expended.
Questioned costs: The questioned costs are unknown, as the amount of payroll that could have been
inappropriately charged to the grant is unable to be recalculated at this time. The true allocation of hours
was not recorded.
Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance
during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform
Guidance. The organization has not required a compliance audit in previous years and management was
not aware of the various requirements of the Uniform Guidance. The payroll deficiencies were a systemic
problem noted during the audit.
Recommendation: We recommend that time and effort be maintained in accordance with the Uniform
Guidance. We recommend that employees clearly identify hours by grant program for appropriate
allocation of the expenses.
Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.