Finding 1186846 (2025-003)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-03-26

AI Summary

  • Core Issue: Timesheets lacked proper allocation of hours worked by program, violating federal requirements.
  • Impacted Requirements: Compliance with 2 CFR § 200.430, which mandates accurate timekeeping records reflecting actual work performed.
  • Recommended Follow-Up: Strengthen timekeeping policies and procedures; monitor the new automated system to ensure accurate payroll allocations to federal awards.

Finding Text

Finding 2025-003, Timesheet – Timekeeping (Assistance Listing 16.575 and 93.958) Criteria: 2 CFR § 200.430 requires that the distribution of salary and wages charged to federal awards be based on records that accurately reflect the work performed, prepared after-the-fact, and includes the total activity for which employees were compensated. Condition and Context: The timesheets used by the Agency through December 2024 did not include the allocation of hours worked by program. Cause: Internal controls over the accurate distribution of hours on the timesheets were not operating effectively or designed properly. Effect: The timesheets do not support the allocation of time charged to the programs. Identification as a repeat finding: Yes. Questioned costs: None. Recommendation: We recommend that the Agency strengthen its policies and procedures for the timekeeping and distribution of the employees’ hours in accordance with the requirements of the federal programs. View of responsible officials: In January 2025, WJCS implemented an automated time and attendance system for staff to track time which integrates with the payroll and financial systems to ensure appropriate allocations to Federal awards. Prior to implementation of the new system, weekly manual timesheets were used to track staff time and attendance on federal contracts. However, these manual timesheets were not integrated into a standard agency-wide payroll processing system. The new system enhancements to payroll tracking will allow WJCS to completely and accurately allocate payroll costs to grants with fewer mechanical steps which increase the risk of miscalculations.

Corrective Action Plan

Finding 2025-003, Timesheet - Timekeeping (Assistance Listing 16.575 and 93.958) Persons Responsible: Irene Math, Chief Financial Officer; Shannon Van loon, Chief Operating Officer Comment: Per 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 personal activity reports (timesheets), prepared after-the-fact, that include the total activity for which employees were compensated. Response: In January 2025, WJCS implemented an automated time and attendance system for staff to track time which integrates with the payroll and financial systems to ensure appropriate allocations to Federal awards. Prior to implementation of the new system weekly manual timesheets were used to track staff time and attendance on Federal contracts. However, these manual timesheets were not integrated into a standard agency-wide payroll processing system. The new system enhancements to payroll tracking will allow WJCS to completely and accurately allocate payroll costs to grants with fewer mechanical steps which increase the risk of miscalculations. Management will continue to monitor the automated timekeeping system through periodic supervisory reviews and payroll-to-grant allocation reconciliations to ensure ongoing compliance with 2 CFR §200.430. Estimated Completion Date: The agency-wide time and attendance system was implemented in January 2025.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1186837 2025-002
    Material Weakness Repeat
  • 1186838 2025-003
    Material Weakness Repeat
  • 1186839 2025-002
    Material Weakness Repeat
  • 1186840 2025-003
    Material Weakness Repeat
  • 1186841 2025-002
    Material Weakness Repeat
  • 1186842 2025-003
    Material Weakness Repeat
  • 1186843 2025-002
    Material Weakness Repeat
  • 1186844 2025-003
    Material Weakness Repeat
  • 1186845 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC PLANNING, DEVELOPMENT, AND IMPLEMENTATION GRANT $1.08M
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC IMPROVEMENT AND ADVANCEMENT $797,511
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $236,859
16.575 CRIME VICTIM ASSISTANCE $149,872
16.839 STOP SCHOOL VIOLENCE $137,069
93.590 COMMUNITY-BASED CHILD ABUSE PREVENTION GRANTS $108,199
93.788 OPIOID STR $82,645
93.052 NATIONAL FAMILY CAREGIVER SUPPORT, TITLE III, PART E $61,028
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $28,728
84.425 EDUCATION STABILIZATION FUND $21,565
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $20,000
84.027 SPECIAL EDUCATION GRANTS TO STATES $16,000
93.667 SOCIAL SERVICES BLOCK GRANT $12,776
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $10,578
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $8,500