Finding Text
Criteria: 2 CFR 200.430 Compensation – personal services. (g) Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (v) Comply with the established accounting policies and procedures of the recipient or subrecipient Condition: • Timesheets were not submitted for 2 out of 18 of the items selected for testing. • 15 out of 18 timesheets were not approved. Cause: • Written policies and procedures outlined in the entity’s employee handbook were not followed. • Management did not ensure proper approvals for timesheets. Effect: • Time incorrectly charged to federal award programs. • Possible reduction of future funding due to noncompliance with federal award program requirements. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend that the WIB review its timesheet policy to ensure it aligns with federal award requirements, is communicated to employees, and provide necessary training. We also recommend management ensure that a process is in place for proper timesheet approvals.