FAC Explorer

Finding 1204624 (2025-005)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396377
Organization: City of Norfolk (VA)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: Schools failed to provide approval documentation for 2 out of 40 payroll timesheets, indicating a lack of effective internal controls.
  • Impacted Requirements: This situation violates 2 CFR section 200.303(a), which mandates proper internal controls for managing Federal awards.
  • Recommended Follow-Up: Schools should improve their approval processes, enhance training on time reporting, and ensure documentation is available for audits before seeking federal reimbursement.

Finding Text

Criteria or specific requirement: Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Schools was unable to provide evidence of timesheet approval for 2 of 40 payroll samples tested. Context: Forty timesheets were selected for testing and the following exceptions were noted: • For 2 of 40 timesheets selected for testing, Schools was unable to provide documentation evidencing the timesheets were properly approved. Questioned costs: Not applicable. Cause: Schools’ procedures and controls were not sufficient to ensure that time and effort reporting was accurately performed and documented, nor that employee time was properly allocated and approved. Effect: There is an increased risk of charging unallowed payroll costs to the program. Recommendation: Schools should reevaluate its current process, implement proper controls, and perform additional training over time and effort reporting. Schools should not seek federal reimbursement unless it can substantiate that the time and effort was dedicated to the federal program. Documentation should be readily available for audit.

Corrective Action Plan

NPS will strengthen its timekeeping and payroll control environment by implementing a standardized, no-exception requirement that all timesheets are reviewed and formally approved by supervisors prior to payroll processing. Documented evidence of approval will be maintained to ensure a complete and auditable record. Policies and procedures will be updated to clearly define roles, responsibilities, documentation standards, and retention requirements, ensuring alignment with 2 CFR 200.303 and reinforcing accountability across the organization. To support consistent execution, NPS will require mandatory training for all employees and supervisors involved in time and effort reporting, with an emphasis on accuracy, compliance, and the connection to federal cost allowability. In addition, NPS will implement a structured monitoring process that includes periodic, risk-based reviews of timesheets and payroll transactions to identify and address any control gaps.

Categories

Cash Management Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1204623 2025-005
    Material Weakness Repeat
  • 1204625 2025-006
    Material Weakness Repeat
  • 1204626 2025-006
    Material Weakness Repeat
  • 1204627 2025-006
    Material Weakness Repeat
  • 1204628 2025-006
    Material Weakness Repeat
  • 1204629 2025-006
    Material Weakness Repeat
  • 1204630 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $16.19M
84.027 SPECIAL EDUCATION GRANTS TO STATES $8.33M
10.553 SCHOOL BREAKFAST PROGRAM $5.98M
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $5.65M
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $5.59M
66.468 DRINKING WATER STATE REVOLVING FUND $5.34M
66.458 CLEAN WATER STATE REVOLVING FUND $5.27M
93.778 MEDICAL ASSISTANCE PROGRAM $4.62M
20.933 NATIONAL INFRASTRUCTURE INVESTMENTS $3.85M
20.205 HIGHWAY PLANNING AND CONSTRUCTION $3.32M
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $3.15M
93.659 ADOPTION ASSISTANCE $2.99M
93.667 SOCIAL SERVICES BLOCK GRANT $2.92M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $2.80M
66.202 CONGRESSIONALLY MANDATED PROJECTS $2.38M
84.041 IMPACT AID $2.37M
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $2.25M
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $2.11M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $2.00M
93.658 FOSTER CARE TITLE IV-E $1.93M
10.556 SPECIAL MILK PROGRAM FOR CHILDREN $1.86M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.28M
10.558 CHILD AND ADULT CARE FOOD PROGRAM $1.03M
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $961,812
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $725,467
93.568 LOW-INCOME HOME ENERGY ASSISTANCE $662,825
14.267 CONTINUUM OF CARE PROGRAM $659,617
10.582 FRESH FRUIT AND VEGETABLE PROGRAM $650,324
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $624,253
84.287 TWENTY-FIRST CENTURY COMMUNITY LEARNING CENTERS $620,008
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $567,238
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $561,775
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $523,413
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $515,719
12.600 COMMUNITY INVESTMENT $484,065
16.575 CRIME VICTIM ASSISTANCE $431,038
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $406,798
97.067 HOMELAND SECURITY GRANT PROGRAM $364,030
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $336,635
93.788 OPIOID STR $332,651
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $297,190
84.013 TITLE I STATE AGENCY PROGRAM FOR NEGLECTED AND DELINQUENT CHILDREN AND YOUTH $262,307
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $220,331
20.939 SAFE STREETS AND ROADS FOR ALL $194,880
14.272 NATIONAL DISASTER RESILIENCE COMPETITION $176,964
93.556 FIRE MANAGEMENT ASSISTANCE GRANT $171,206
10.727 INFLATION REDUCTION ACT URBAN & COMMUNITY FORESTRY PROGRAM $168,237
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $167,724
14.889 CHOICE NEIGHBORHOODS IMPLEMENTATION GRANTS $132,199
93.150 PROJECTS FOR ASSISTANCE IN TRANSITION FROM HOMELESSNESS (PATH) $126,647
16.812 SECOND CHANCE ACT REENTRY INITIATIVE $124,333
84.371 COMPREHENSIVE LITERACY DEVELOPMENT $120,225
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $116,424
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $115,855
84.425 EDUCATION STABILIZATION FUND $113,205
16.593 RESIDENTIAL SUBSTANCE ABUSE TREATMENT FOR STATE PRISONERS $89,115
93.472 TITLE IV-E PREVENTION PROGRAM $87,610
93.090 GUARDIANSHIP ASSISTANCE $81,703
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $73,200
20.940 RECONNECTING COMMUNITIES PILOT (RCP) DISCRETIONARY GRANT PROGRAM $68,674
45.024 PROMOTION OF THE ARTS GRANTS TO ORGANIZATIONS AND INDIVIDUALS $66,386
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM $61,275
16.922 EQUITABLE SHARING PROGRAM $56,253
84.196 EDUCATION FOR HOMELESS CHILDREN AND YOUTH $54,305
93.566 REFUGEE AND ENTRANT ASSISTANCE STATE/REPLACEMENT DESIGNEE ADMINISTERED PROGRAMS $50,001
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $45,479
97.056 PORT SECURITY GRANT PROGRAM $39,870
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $38,049
66.466 GEOGRAPHIC PROGRAMS - CHESAPEAKE BAY PROGRAM $35,519
16.590 GRANTS TO ENCOURAGE ARREST POLICIES AND ENFORCEMENT OF PROTECTION ORDERS PROGRAM $35,378
20.600 STATE AND COMMUNITY HIGHWAY SAFETY $30,986
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $28,160
93.674 JOHN H. CHAFEE FOSTER CARE PROGRAM FOR SUCCESSFUL TRANSITION TO ADULTHOOD $23,171
16.606 STATE CRIMINAL ALIEN ASSISTANCE PROGRAM $21,141
16.710 PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS $15,000
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $13,470
20.607 ALCOHOL OPEN CONTAINER REQUIREMENTS $13,410