Finding Text
2024-4 Assistance Listing 93.489/93.575/93.596 CCDF Cluster Condition and Perspective Information: Accounting records do not accurately reflect the amounts reported on program expenditure billing reports. In addition, the Organization did not have access to supporting time documentation for personnel costs charged to the program. Criteria: Accounting records should be an accurate representation of the financial activity throughout the year as evidenced in the general ledger. Allowable personnel costs are to be supported by detailed records. Cause: Due to changing payroll providers, the Organization no longer had access to supporting time reports. Effect: Noncompliance with Allowable Cost/Cost Principles Questioned Costs: Unknown. Repeated Finding: No. Recommendation: The Organization should record the actual amounts spent by each program and government funding source in their accounting records which should match the billing reports. The Organization should also maintain adequate support of personnel charges based on timesheets of actual time spent on the program that are accessible by the Organization and maintained in accordance with the Organization’s Retention and Destruction policies. Views of responsible officials of the auditee: Minnesota Association for Children’s Mental Health agrees with the finding. Summary of Corrective Action Plan: The Organization will maintain timesheets to support all personnel charges to the program. They will also use information that is supported by the general ledger to prepare grant billing reports.