Finding Text
Program: All Criteria: Charges to grants require proper authorization, clear connection to project activities, reasonable cost, and documentation of payroll hours that reflects employee time and effort. Condition: Reallocations of wages and related expenditures were made on occasion without documentation that both supported the change and approved the change. The adjustments made to wages similarly impacted cost allocations based on wages. Context: The condition was noted during our testwork over the Organization’s expense transactions. Effect: Costs charged to programs did not always correspond with the time and effort documented by the employee and approval by the manager. Cause: Prior accounting staff periodically adjusted costs charged to programs without maintaining sufficient documentation detailing the nature of the changes. This resulted in the time documented by employees in timecards and approved by a manager not corresponding with the entry in the accounting system. Recommendation: If any adjustments are deemed necessary to an employee time-card, the change should be documented, and approval of the change present to support the changes. Questioned Costs: Undeterminable View of Responsible Officials: BFCAC made a change in personnel during 2024. Subsequently, BFCAC has emphasized the need to maintain supporting documentation for all charges, including changes to timesheets, and supporting documentation for manual adjustments. The Executive Director and the Finance Manager are responsible for this corrective action.