Finding Text
Documentation of Payroll Costs Federal Agency: U.S. Department of Education Federal Program Name: Twenty – First Century Community Learning Center and After School Programs Grant – Non-School Districts Assistance Listing Number: 84.287 Pass-Through Agencies: Illinois Alliance of Boys and Girls Clubs and Illinois State Board of Education Pass-Through Numbers: 21st CCLC FY 2024, 21st CCLC FY 2025 Award Periods: Various July 1, 2024 through August 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that changes to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: In testing a sample of 35 payroll items, we identified the following: o 2 out of the 35 transactions tested had incorrect timesheets that did not match hours per the payroll registers. o 3 out of the 35 transactions had incorrect hours actually vouchered to the grant that did not tie to the timesheets. This resulted in expenditures being both under and over vouchered. Questioned Costs: None. Context: Timesheets are not being properly documented throughout the payroll process, and available to support payroll costs vouchered for and the payroll registers. Cause: Timesheets need to be monitored to ensure proper supporting documentation is available to support the expenditures. Effect: Inaccurate payroll costs may be charged to the SEFA. Repeat Finding: This is not a repeat finding. Recommendation: Policies and procedures over the processing of payroll transactions should include proper review and approval of timesheets to ensure hours match the hours per payroll register and correct hours are charged to the grant. Views of responsible officials and planned corrective actions: There is no disagreement with the audit findings. The corrective action plan to address this deficiency includes the following actions: High quality accounting personnel will ensure hours match the hours per payroll register and correct hours are charged to the grant. Name(s) of the contact person(s) responsible for corrective action: Mary Ann Mahon Huels, President and CEO Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented immediately.