Finding Text
Finding: 2024-004 Monthly Time/Activity Reports not Maintained for Salaried Employees
Federal Program Identification: U.S. Department of Health and Human Services
Health Center Cluster
Assistance Listing No. - 93.527 & 93.224
Criteria: Uniform Guidance Compliance Supplement, Grant Policy Statements, 45 CFR, 75.430
Condition: Time/activity reports (time sheets) and /or I-9 forms are not maintained for certain employees as required by federal cost principles.
Cause: The Organization failed to follow its policy to maintain time and effort reports that coincide with the Organization’s payroll cycle (at least on a monthly basis) and failed to maintain complete I-9 forms for all employees.
Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds.
Questioned Costs: None
Context/Sampling: A test of payroll disbursements revealed that time and effort certifications for 21 employees were not maintained, and 4 employees had missing or incomplete I-9 forms. The finding appears to be a systemic issue.
Repeat Finding from Prior Year: Yes
Recommendation: The Organization should evaluate and revise its processes and procedures to ensure that it maintains documentation of personnel time and efforts in accordance with federal cost principles and that I-9 forms are maintained for all employees. It is recommended that time and effort certifications be prepared no less than monthly and coincide with the Organization’s payroll cycle.
Views of Responsible Officials: Management concurs. This was corrected after the audit for the fiscal year ended November 30, 2023, which was completed after the fiscal year ended November 30, 2024.
Contact Person: Suzanne Freeman, CEO
Anticipated Date of Completion: October 31, 2025