Finding Text
2022-006 U.S. Department of Health and Human Services Temporary Assistance for Needy Families (TANF) Allowable Costs ? Payroll Time and Effort Material Weakness in Internal Controls over Compliance Criteria: Per Uniform Guidance (2 CFR Section 200.430(i)) as it relates to federal grants: Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities (for IHE, this per the IHE's definition of IBS); (iv) Encompass federally-assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non-Federal entity's written policy; (v) Comply with the established accounting policies and practices of the non- Federal entity; and (vi) [Reserved](vii) Support the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Condition: The District did not have proper timing keeping for employees that worked on TANF. Thus, evidence of actual time worked on programs was not accurately reflected in the federal grant requests. Cause: Actual personnel time that worked on federal programs are not reconciled to the amounts charged to the federal programs on a regular basis. Context/Sampling: Time reporting controls were not in effect at the District. All employees funded under TANF in FY22 were selected and one employee?s time and effort was not provided. Questioned Costs: None reported. Effect: The District is at risk for noncompliance with allowable costs requirements. Repeat Finding from prior year: No Recommendation: Certain controls should be put in place to ensure that reconciliation and certification of actual time charged to federal programs are consistent with the grant reimbursement for those employees? time. Such reconciliations can be done quarterly, bi-annually, or annually. View of Responsible Officials: Management agrees with the finding.