Finding Text
Finding No. 2024-002: Internal Control over Payroll – Material Weakness Assistance Listing Program Title and Number: Coronavirus State and Local Fiscal Recovery Funds 21.027 Federal Agency: U.S. Department of Treasury Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of allowable costs. Connecticut Veterans Legal Center, Inc. should have internal controls designed to ensure compliance with those provisions. Condition: Connecticut Veterans Legal Center, Inc. does not have a standard policy requiring the preparation of time sheets for all employees. Questioned Costs: Unknown Cause: Management believed that they should charge the award based on quarterly value of the contact. Effect: The effect is that salaries charged may not represent the award's allocable share. Questioned Costs: Unknown Context: Connecticut Veterans Legal Center, Inc. is charging to the award based on the quarterly value of the contract which does not correspond with the actual salary expense that should have been allocated to the award. While costs charged to the award for salaries and benefits did not exceed the established budget, without supporting time sheets, it is unknown if the employees charged to the award should have been. Repeat Finding: Yes Recommendation: Connecticut Veterans Legal Center, Inc. should formalize a process of employee documentation of time and effort for the award as well as supervisor review over allocations to the award to ensure that allocations are based on actual time and effort. Management’s Response/Views of Responsible Officials: Management concurs with the finding. See separate corrective action plan.