Finding Text
Federal Agency: Department of Health and Human Services Federal Program: 93.137 Community Programs to Improve Minority Health Grant Program Identification Number: 1 CPIMP211296-01-00 Requirement: Activities Allowed or Unallowed; Allowable Costs and Cost Principles Type of Finding: Significant deficiency in internal control over major program Criteria: Charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one federal award; a federal award and non-federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases or an unallowable activity and a direct or indirect cost activity. Condition: An employee of the program did not have any pay allocated to the program in the general ledger. Cause: The City believes an override occurred in the accounting system excluding the employee from the program. There is no support for this conclusion. Effect: Failure to allocate employee pay in accordance with federal requirements could result in a loss of funding. Also, payroll amounts charged to another program may be overstated. Context: For all five pay periods tested, an employee whom was allocated to the Minority Health Program in the payroll system was excluded from the Minority Health Program in the accounting software. Support could not be provided showing that this allocation was appropriate. Recommendation: The Minority Health Program staff should maintain support and rationale for all allocations of payroll costs for employees charged to federal awards. Additionally, employees should earmark their timesheets with the number of hours worked on each program. Views of Responsible Official(s) and Planned Corrective Actions: See corrective action plan.