Finding 223 (2022-003)

Condition & Criteria: During our testing of salaries expenses charged to the Head Start program, we determined that thirteen employees had a portion of their time allocated to the Head Start program. The salaries expenses charged to the Head Start program for these thirteen employees were based on budgeted time allocations, not a time study or other valid basis for allocation. Questioned Costs: $91,465 Effect: Time spent on the Head Start program for each of these employees may not have agreed to the budgeted levels used for allocation. Cause: Lack of comprehensive time study or other analysis to support the salary allocation. Auditors’ Recommendation: For the Head Start program, the vast majority of employees charged to the grant work solely on that program. For the employees that are allocated to other programs or functions, periodic time studies should be performed to ensure that cost allocations to the Head Start program are accurate. Views of the Responsible Officials and Planned Corrective Actions: FTCC concurs with this finding and will make every attempt to create time studies to support salary allocations in the future.