Finding Text
Criteria: The County did not maintain adequate time and effort reporting documentation to validate the proper allocation of payroll charges to the Aging Cluster, Temporary Assistance for Needy Families and WorkFirst New Jersey grants. Additionally, it was noted that journal entries were made to allocate payroll costs to grants lacked sufficient detail to verify the accuracy of the amounts allocated to individual employees. Specifically, the journal entries did not include supporting documentation, such as employee payroll registers, time and effort certifications, or other records necessary to substantiate the allocation of payroll expenses to the respective grants. The total amount of payroll charged under the jurisdiction of the Mercer County Workforce Development Board for all grants however was in agreement with the total payroll charged. Condition: The County maintains a cost allocation plan that includes a distribution of payroll from a cost pool that is determined by the estimated time spent working on specific grant related activities. The County could not corroborate the correct allocation of payroll was charged for certain employee's salaries that were charged to the Aging Cluster, Temporary Assistance for Needy Families and WorkFirst New Jersey grants. Cause: The County did not maintain adequate documentation to support the proper percentage of salaries that were allocated to the Aging Cluster, Temporary Assistance for Needy Families and WorkFirst New Jersey grants. Furthermore, the County does not have a formalized process to ensure that payroll journal entries made to allocate grant costs are supported by detailed employee level documentation. The current procedure relies on summary journal entries without requiring the inclusion of supporting records to validate the allocation. Effect: Although the total salaries charged to all of the grants under the jurisdiction of the Aging Cluster and Mercer County Workforce Development Board in total appear accurate, an improper allocation to the Aging Cluster, Temporary Assistance to Needy Families and WorkFirst New Jersey grants could contribute to noncompliance with allowable costs requirements. Recommendation: The County should implement procedures to ensure they are in compliance with time and effort reporting requirements and can evidence the proper allocation of payroll charges amongst all of the grants.