Finding 1155746 (2024-002)

2024-002: Employee Time Tracking Sexual Risk Avoidance Education Assistance Listing Number: 93.060 Grant Numbers: 90SR0194-01-00 and 90SR0194-02-00 Grant Periods: 10/1/2023 - 9/30/2024 and 10/1/2024 - 9/30/2025 Material Weakness: Condition: As discussed at Finding 2024-001, the Organization does not have adequate internal controls in place to ensure that employee time charged to federal programs is accurately tracked and documented. Documentation of actual time worked by employees charged to the program for reimbursement could not be provided. 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 employee's salaries among specific activities or cost objectives, including federal awards. Cause: The Organization has not implemented a formal time-tracking system or provided sufficient training to employees and supervisors on federal time and effort reporting requirements. Effect: The labor costs incurred and charged to the program for reimbursement may be disallowed. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding. Refer to the Corrective Action Plan. Context: A sample of 31 payroll transactions totaling $40,495 was selected for audit from a population of 288 payroll transactions totaling $268,992. The test found that none of the payroll transactions selected had adequate records to support the time worked, resulting in questioned costs of $40,495. Our sample was a statistically valid sample.