Finding Text
Allowable Costs - Lack of Management Oversight to Ensure Retention of Timesheets Approval and Payroll Allocation – Material Weakness in Internal Control Over Compliance U.S. Department of Health and Human Services: Health Center Program and American Rescue Plan Act Funding for Health Centers, ALN 93.224; Ending HIV Epidemic – Primary Care HIV Prevention, ALN 93.527. 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 The Health Center was unable to locate supporting timesheets for 51 of the 60 selections requested to perform our payroll testing. For the nine transactions supported by timesheets, we noted seven instances where the employees' recorded time did not support the hours charged to the grant. We also identified two instances where the recalculated payroll expense did not reconcile to the amount recorded in the general ledger. Additionally, one timesheet did not contain evidence of supervisory approval. Furthermore, we identified 20 instances in which the pay rates documented in employees' personnel files did not agree to the rates reflected in the payroll registers. Cause Staff turnover in the Finance Department coupled with inadequate controls to ensure that the historical payroll records are maintained and reconciled to the general ledger. Effect and Potential Effect Time charges to the federal award may have been improper leading to inaccurate information being charged through the awards. Questioned Costs $1,808,828. Repeat Finding Yes (2023-009). 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 Action See corrective action plan.