Finding Text
Finding # 2025-001 Type: Material weakness Type: Immaterial noncompliance Assistance Listing Number: Department of Health and Human Services 93.658 Foster Care Title IV-E Requirement: Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Such records must meet the standards as specified in 2 CFR 200 Subpart E Cost Principles §200.430. Condition: Certain entries in the payroll system were entered, reviewed, and approved before the work had been performed. Context: Total payroll charged before the work was performed was approximately $18,200 of the $773,000 total federal expenditures for the year. Cause: The new time keeping system was not implemented correctly. Effect: Payroll costs charged to the grant may not be accurate. Questioned Costs: Approximately $18,200 (extrapolated $34,400) Recommendation: We recommend management use the time tracking system to track all and exact time worked on government grants and programs. In addition, management should ensure that the timecards submitted by staff are reviewed and approved timely after the work is performed. Management’s Response: Management will reconfigure the system to require after-the-fact entry of actual hours worked and to restrict advance entry and approval, reinforce supervisory review procedures to ensure timely and accurate approval of timecards, and provide training to employees and supervisors on federal timekeeping requirements under 2 CFR 200.430. These actions will strengthen internal controls and ensure payroll costs charged to federal awards accurately reflect work performed going forward.