Finding 1181862 (2023-001)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2026-03-23

AI Summary

  • Core Issue: Inadequate documentation for payroll costs related to federal awards, relying on estimates instead of actual time records.
  • Impacted Requirements: Compliance with federal grant agreements requires accurate documentation of time and effort for each program.
  • Recommended Follow-Up: Implement controls for staff to submit detailed time and attendance records linked to specific federal programs.

Finding Text

Condition – Although the Organization incurred allowable costs under these federal awards, adequate documentation supporting the allocation of payroll costs was not maintained. Instead of relying on time and attendance records to substantiate actual time spent on each program, management estimated the amounts charged to federal awards. Criteria – Documentation of actual time and effort devoted to each federal program is required to comply with the provisions of federal grant agreements and to support the accuracy of payroll charges. Effect – Payroll expenditures reported throughout the fiscal year may be inaccurate. *This is a repeated finding from the prior year. The prior year finding number was 2022-001. Recommendation – We recommend that the accounting department implement controls and procedures requiring staff to submit time and attendance records that clearly identify the federal programs to which their time incurred relates. Management's Response - See management's corrective action plan on page 14-15.

Corrective Action Plan

The Organization has implemented a standardized time-and-attendance process requiring all staff whose salaries are charged to federal programs to document actual time worked by program. Supervisors will review and approve these records monthly, and the accounting department will verify that payroll allocations agree to approved documentation before charging costs to federal awards.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1181863 2023-002
    Material Weakness Repeat
  • 1181864 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $918,810
14.267 CONTINUUM OF CARE PROGRAM $724,653
93.778 MEDICAL ASSISTANCE PROGRAM $217,760