Finding Text
Material Weakness Finding: 2026-002 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Cluster Assistance Listing No. - 93.224 and 93.527 Criteria: Uniform Guidance Compliance Supplement, Grant Policy Statements, 45 CFR, 75.430 Condition: Time/activity reports (time sheets) and /or wage authorization approvals are not maintained for certain employees as required by federal cost principles. Cause: The Organization failed to follow its policy to maintain time and effort reports that coincide with the Organization’s payroll cycle (at least on a monthly basis) and failed to maintain wage authorization approvals for all employees. Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds. Questioned Costs: None Context/Sampling: A test of payroll disbursements revealed that time and effort certifications for 2 employees were not maintained, and 2 employees wage authorizations were not approved. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: The Organization should evaluate and revise its processes and procedures to ensure that it maintains documentation of personnel time and efforts in accordance with federal cost principles and that approved wage authorizations are maintained for all employees. It is recommended that time and effort certifications be prepared no less than monthly and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Policies and procedures will be established to ensure that wage authorizations are approved for all employees and that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: October 31, 2026