FAC Explorer

Finding 1228553 (2025-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-09-01
Audit: 410183
Organization: Housing Authority of the County of Lawrence (PA)
Auditor: SMITHMARION&CO

AI Summary

  • Core Issue: Employees are inaccurately reporting full workdays while leaving early, violating federal requirements for timekeeping.
  • Impacted Requirements: Compliance with 2 CFR 200.430 on accurate documentation of work performed, leading to questioned costs and weakened internal controls.
  • Recommended Follow-Up: Reinstate accurate timekeeping, ensure repayment of questioned costs, strengthen controls, provide training, and consider further investigation.

Finding Text

According to 2 CFR 200.430 Compensation - personal services, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. During the audit we observed documentation showing employees recording a full 8 hour work day on time sheets while leaving work early. Management was instructed to cease tracking and compensate employees for full time anyway. Employee(s) doing the following activities and still getting compensated for a full 8 hour work day; Employee(s) leaving their assigned worksite prior to the end of work day, employee(s) not calling off or leaving early for appointments without correctly calling off nor submitting the proper leave slips, employee(s) arriving late and leaving early daily. Management override and lack of monitoring/enforcement. Questioned costs, weakened internal controls increasing risk of ongoing misuse; potential repayment, sanctions, or loss of funding eligibility. Immediate reinstatement of accurate timekeeping; repayment of questioned costs; strengthened controls and training; possible referral for further investigation. Management agrees

Corrective Action Plan

Program: Public Housing Operating Fund AL Number: 14.850 Finding Number: 2025-002 Audit Finding (Copied & Pasted Directly from Auditor’s Report): Condition: During the audit we observed documentation showing employees recording a full 8 hour work day on time sheets while leaving work early. Management was instructed to cease tracking and compensate employees for full time anyway. Context: Employee(s) doing the following activities and still getting compensated for a full 8 hour work day; Employee(s) leaving their assigned worksite prior to the end of work day, employee(s) not calling off or leaving early for appointments without correctly calling off nor submitting the proper leave slips, employee(s) arriving late and leaving early daily. Cause: Management override and lack of monitoring/enforcement Criteria: According to 2 CFR 200.430 Compensation - personal services, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed Corrective Action to Be Taken: Reinstatement of accurate timekeeping with outlined policy and procedures including a discipline action plan for inaccurate payroll and leave slips submission. Strengthened controls and training; Support of management without overrides. Contact Responsible for Corrective Action: Gene Digennaro, Interim Executive Director PO Box 988 481 Neshannock Avenue New Castle, PA 16103 724-656-5100 ext. 204 gdigennaro@lawrencecountyha.com Tara Sheffler, Comptroller PO Box 988 481 Neshannock Avenue New Castle, PA 16103 724-656-5100 ext. 210 tsheffler@lawrencecountyha.com

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Eligibility Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC HOUSING OPERATING FUND $3.38M
14.872 PUBLIC HOUSING CAPITAL FUND $3.31M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.38M