Finding 1155762 (2024-003)

2024-003 – Coronavirus Capital Projects Fund - Assistance Listing No. 21.029; Grant Period - For the year ended December 31, 2024 Condition: The Organization did not prepare timely reports to provide supporting documentation for the allocation of program payroll costs to the grant. Criteria: The Organization is required to prepare time studies to support the amount of program payroll costs charged to the grant. In addition, these time studies should include documented review and approval of management. Cause: The Organization did not have the necessary procedures in place to prepare, review and approve timely reports to support the allocation of program payroll costs. Effect of Condition: The Organization did not prepare or review and approve time studies in a timely manner to support the program payroll costs charged to the grant. Questioned Cost: None. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Organization's should adopt procedures to prepare time studies for all program payroll costs allocated to the grant. These time studies should be completed on a timely and periodic basis and should include a documented review and approval by management. Views of Responsible Officials and Planned Corrective Actions: The Organization had an established process in place to substantiate payroll costs and provided documentation to the funding source as requested. The funding source accepted the documentation and processed payments without raising any compliance concerns. Management has now implemented a new, more detailed time tracking procedure which will enhance documentation and is in line with the recommended process.