Finding Text
AL 93.671: Allowable Costs - Time and Effort Reporting – Material Weakness Criteria A key control surrounding the payroll disbursement process is the presence of timesheets noting time and effort of employees. Condition Payroll registers for a portion of the year could not be obtained to verify payroll allocations charged to grant due to a change in payroll processors. Cause Supporting documentation for payroll allocations was not available for review during the audit. Effect Payroll allocations were unable to be verified. Questioned Costs $50,883 Context In 2024, there were changes in staff and programs holding payroll documents. The total amount paid for payroll including items chosen for sampling was $88,215. Out of this amount, we were able to substantiate $37,332 of payroll expenses. Recommendation We recommend that all approved timesheets be kept on a local server and documenting the methodology for allocating payroll expenses that are reimbursed by grant funds. View of Responsible Officials and Planned Corrective Actions The Abused Adult Resource Center’s payroll allocations for grants will be documented on timesheets and the hard copies will be filed or scanned onto a local drive kept by the Center. Indication of Repeat Finding This is a repeat finding of finding 2023-002 from the prior year.