Finding Text
Finding 2025-004: Eligibility – Inadequate Review and Documentation of Tutor Timesheets (Noncompliance and Material Weakness) Criteria: Per the grant contract and 2 CFR 200.303, the entity must maintain effective internal controls to ensure that only eligible costs are charged to the grant. The contract specifically requires that tutor timesheets be reviewed and signed by the site coordinator and director, with an additional review by the grant coordinator, prior to submission for payment. Condition: During our testing of tutor payroll, we noted that none of the tutor timesheets tested had received the required signatures from the grant coordinator and/or grant director. Additionally, 104 timesheets were missing from the population tested. Cause: The lack of required signatures and missing timesheets resulted from insufficient procedures to ensure all timesheets are properly reviewed, authorized, and retained in accordance with grant requirements. Effect: Failure to obtain required approvals and maintain complete documentation increases the risk of ineligible or unsupported costs being charged to the grant, and may result in questioned costs or disallowance by the granting agency. Recommendation: We recommend the entity implement procedures to ensure all tutor timesheets are reviewed and signed by the site coordinator, grant coordinator, and director prior to submission to the finance department for payment. Additionally, all timesheets should be retained and available for audit. Management’s Response: We will maintain effective internal controls to ensure timesheets are reviewed and signed by site coordinators and director with an additional review by grant coordinator with initials documented on timesheets prior to submission.