Finding Text
Finding 2022-006, 2021-004, 2020-002 ? Time Reporting/Personnel Activity Reports Program Name: Substance Abuse and Mental Health Services ? Projects of Regional and National Significance ? Assistance Listing 93.243 Section 223 Demonstration Programs to Improve Community Mental Health Services ? Assistance Listing 93.829 Awarding Agency: U.S. Department of Health and Human Services, passed through Substance Abuse and Mental Health Services Administration, 2022 Finding Type: Material Weakness on Internal Controls over Compliance and Material Noncompliance Questioned Cost Amount: Unknown Context / Criteria: 2CFR200.400.430(i) requires the distribution of salary and wages charged to federal awards should be based on actual employee activity as reflected in personnel activity reports (timesheets), prepared after the fact, which include the total activity for which employees were compensated. Condition: For all payroll transactions selected during our test work, it was noted that the payroll register did not agree to the amounts charged to each grant. Additionally, there was not a personnel activity report (PAR) or timesheet equivalent provided to support the employees? time charged to the grant. For AL 93.243 60 of 60 transactions lacked personnel activity reports to document time spent on the award. Additionally, 21 of 60 transactions lacked approval for the pay period?s time entry. For AL 93.829 60 of 60 transactions lacked personnel activity reports to document time spent on the award. Additionally, 18 of 60 transactions lacked approval for the pay period?s time entry. Cause / Effect: The Organization did not have adequate controls in place to ensure amounts charged to the grant were properly supported and approved. Recommendation: We recommend management review payroll for accuracy, including comparing the timesheets/PARs to the payroll register, and the payroll register to the general ledger to ensure time charged to the grant accurately reflects work performed relating to the grant. Views of Responsible Officials: Management is in agreement with the finding. Corrective Action Plan: See attached corrective action plan.