Criteria In accordance with the Uniform Guidance, the costs charged to federal funds must comply with the cost principles of 45 CFR Part 75, Subpart E, and any other requirements or restrictions on the use of federal funding. Condition and Context QCHC was unable to provide the approval of timesheets and the payroll allocation for 60 selections for payroll control testing. Recommendation We recommend that management implement procedures to ensure that timesheets and related approvals are adequately maintained and supported. Views of Responsible Officials and Planned Corrective Actions QCHC acknowledges the finding and has implemented the following corrective actions: 1. QCHC has implemented Policy 911 - Labor Distribution Reporting, which establishes that charges to awards for salaries and wages, whether treated as direct costs or indirect costs, will be based on documented payrolls approved by a responsible supervisory official. 2. QCHC has established that employees are responsible to use the ADP time clock to record their time worked, with supervisors/managers having full access to monitor their department time in/out and leave. 3. QCHC has implemented the Draw Down Policy & Procedure (Policy #308 DRAWDOWN) which establishes that salary and wage charges are supported by a system of internal controls which provides reasonable assurance that they are accurate, allowable, properly allocated and in compliance with the organization's policies and procedures. 4. QCHC has established that employee timesheets are completed electronically and supervisors approve hours worked which are processed by the Accounts Payable Manager, with a salary allocation maintained to track and reconcile the assignment of the Organization's salaries and wages to all grant programs. 5. QCHC has implemented Policy 917 -Timely Submission of Timesheets and Penalties, which establishes that until an accurate and complete timesheet is submitted to the payroll clerk, an employee will not be paid during that pay cycle.