Finding 1162593 (2023-002)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2025-11-18

AI Summary

  • Core Issue: Timesheets do not accurately reflect hours worked by program, violating federal requirements.
  • Impacted Requirements: 2 CFR § 200.430 mandates that salary charges to federal awards be based on actual employee activity.
  • Recommended Follow-Up: Improve policies and procedures for timekeeping to ensure accurate distribution of employee hours.

Finding Text

Finding 2023-002, Timesheet – Timekeeping (Assistance Listing 93.567 and 93.576) Criteria: 2 CFR § 200.430 requires that the distribution of salary and wages charged to federal awards be based on actual employee activity as reflected in personnel activity reports (timesheets), prepared after-the-fact, and includes the total activity for which employees were compensated. Condition and Context: The Organization’s current timesheet does not include the allocation of hours worked by program, neither the schedule provided that support employees’ payroll allocation agreed for 14 out of the 48 sampled selected. Cause: Internal controls over the accurate distribution of hours on the timesheets were not operating effectively or designed properly as well as the worksheets that support the payroll allocation. Effect: The timesheets or worksheets do not support the allocation of time charged to the programs. Identification as a repeat finding: No. Questioned costs: None. Recommendation: We recommend that the Organization strengthen its policies and procedures for the timekeeping and distribution of the employees’ hours in accordance with the requirements of the federal programs.

Corrective Action Plan

Finding 2023-002 Assistance Listings: 93.567 & 93.576 Issue: Inadequate timekeeping allocation procedures. We respectfully acknowledge the finding inadequate allocation procedures, and we offer the following clarifications. Corrective Actions 1. Payroll System Upgrade – Implementing UKG with grant allocation fields (configuration underway). 2. Manager Review Cycle – Monthly allocation reports auto-sent to managers; signed approvals returned to Accounting. 3. CFO Review & Sign-off – CFO verifies and finalizes allocations before posting to FundEZ. 4. Written Policies – Comprehensive timekeeping and allocation manual (draft completed; final issue by July 15 2025). Responsible Official: Renee Carroll, CFO Target Completion: System live and policies finalized by July 30, 2025.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1162588 2023-001
    Material Weakness Repeat
  • 1162589 2023-002
    Material Weakness Repeat
  • 1162590 2023-003
    Material Weakness Repeat
  • 1162591 2023-004
    Material Weakness Repeat
  • 1162592 2023-001
    Material Weakness Repeat
  • 1162594 2023-003
    Material Weakness Repeat
  • 1162595 2023-004
    Material Weakness Repeat
  • 1162596 2023-005
    Material Weakness Repeat
  • 1162597 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.567 REFUGEE AND ENTRANT ASSISTANCE VOLUNTARY AGENCY PROGRAMS $997,527
93.576 REFUGEE AND ENTRANT ASSISTANCE DISCRETIONARY GRANTS $872,576
19.510 U.S. REFUGEE ADMISSIONS PROGRAM $238,159
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $80,537
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $11,137