Finding Text
Criteria: Payroll expenses are required to be allowable and accurate per the grant agreement. Condition: Grant claims submitted and paid had various errors in shift differential payroll. Errors included an unallowable cost and incorrect calculations for grant claims. Cause: There is not an adequate internal control system in place to determine what is an allowable cost and ensure payroll calculations are accurate. Effect: Several errors were found including an unallowable cost and incorrect calculation of shift differential claimed. Questioned Costs: Unallowable cost of $83 was identified in the sample of ten employee payments reviewed. There were also incorrect calculations on five out of ten employee payments tested resulting in underclaimed amounts. Perspective Information: The shift differential findings are isolated to payroll samples tested but may be pervasive to other payrolls. Repeat Findings: Not a repeat finding. Context: Payroll testing was conducted on a sample of ten employees. One employee had an unallowable cost of $83 that was claimed and reimbursed by the grantor. Five out of ten employees tested had incorrect calculations resulting in underclaimed amounts. Recommendation: Procedures should be established to ensure only allowable costs are submitted to grantors and payroll calculations are accurate. Views of Responsible Officials and Planned Corrective Actions: YWCA acknowledges weaknesses in payroll allowability and calculation accuracy. • Update written payroll procedures for grant-funded employees that define allowable and unallowable pay elements (including shift differentials) and specify documentation requirements. • Configure payroll and accounting systems to properly classify VOCAfunded positions and apply standard shift differential calculations, with automated checks where possible. • Require a secondary review of payroll registers and allocations for VOCAfunded staff before costs are included in reimbursement requests, with sign-off by designated finance team member. • Provide training to HR, payroll, and finance staff on VOCA grant requirements, federal cost principles, and internal review procedures.