Finding 1815 (2022-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-11-14
Audit: 3175
Organization: Kenneth Young Center (IL)
Auditor: Porte Brown LLC

AI Summary

  • Core Issue: Cost allocations for salaries lack proper documentation, such as timesheets, leading to potential misallocation of employee time.
  • Impacted Requirements: Internal controls must ensure accurate cost allocations based on actual time spent by employees on federal programs.
  • Recommended Follow-up: Implement mandatory timesheet reporting for all employees to support accurate payroll cost allocations.

Finding Text

Condition: Cost allocations for salaries and related expenses allocated across program activities, including federal award programs, are not supported by employee timesheets or other similar documentation. Criteria: Internal controls should be in place that provide reasonable assurance that cost allocations accurately represent the correct allocation of employee related costs based on the time spent by applicable employees. Cause: In Juny to November 2021, there were no procedures in place that require timesheets or other time tracking for individuals who are spending time on federal program activities. Effect: Because timesheets are not required, it is possible that an employee's time may be inappropriately allocated amongst funcational activities, including federal award programs. Questioned Costs: None noted. Recommendation: Proedures should be implemented requiring the completion of timesheets for all employees. Views of Responsible Officials and Planned Corrective Actions: As of November 2021, the Organization has implemented timesheet reporting and will require the submission of timesheets for its employees and make applicable necessary adjustments to ensure the payroll cost allocation is reflective of submitted timesheets.

Corrective Action Plan

Audit Recommendation: Procedures should be implemented requiring the ocmpletion of timesheets for all employees. Planned Corrective Actions: Kenneth Young Center has implemented timesheet reporting and will require the submission of timesheets for its employees and make applicable necessary adjustments to ensure the payroll cost allocation is reflective of submitted timesheets. Anticipated Completion Date: Complete. Contact Person: Rachel Zavala, Controller.

Categories

Allowable Costs / Cost Principles Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1816 2022-001
    Material Weakness Repeat
  • 1817 2022-001
    Material Weakness
  • 578257 2022-001
    Material Weakness Repeat
  • 578258 2022-001
    Material Weakness Repeat
  • 578259 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.959 Block Grants for Prevention and Treatment of Substance Abuse $679,084
21.027 Coronavirus State and Local Fiscal Recovery Funds $630,704
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $226,294
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $188,485
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $184,367
93.788 Opioid Str $180,994
93.276 Drug-Free Communities Support Program Grants $124,992
93.052 National Family Caregiver Support, Title Iii, Part E $75,285
93.958 Block Grants for Community Mental Health Services $41,101
93.558 Temporary Assistance for Needy Families $20,307
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $1,322