FAC Explorer

Finding 30151 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-08-20
Audit: 31028
Organization: Goodwill Industries of Michiana Inc. (IN)
Auditor: Kruggel Lawton & CO LLC

AI Summary

  • Core Issue: Three out of 25 timecards lacked approval, raising concerns about compliance with federal documentation standards.
  • Impacted Requirements: Payroll charged to federal awards must meet documentation criteria outlined in the Uniform Guidance.
  • Recommended Follow-Up: Management should establish a review process to ensure all timecards for federal grant activities are approved by a supervisor.

Finding Text

2022-003 ALLOWABLE COSTS Federal Agency: Department of Health and Human Services Federal Program: Maternal and Child Health Services Block Grant to the State Assistance Listing Number: 93.994 Federal Award Numbers and Year: SCM57019 October 1, 2021 - September 30, 2023 SCM56903 October 1, 2021 - September 30, 2023 Condition: Out of a sample of 25 timecards, 3 were lacking evidence of approval. The 3 timecards that were not approved were all for the same hourly employee charged to the grant each pay period. All of the employee's wages pertained to federal grant activities. Criteria: Payroll charged to federal awards is subject to standards of documentation required by the Uniform Guidance. Cause: The individual was the only hourly employee charged to the grant. The system of approval used for salaried employees charged to the grant did not alert the Organization that the hourly employee's timecard was not approved. Effect: Payroll for unallowed costs could be incorrectly charged to the grant. Identification of Repeat Findings: This is not a repeat finding. Recommendation: Management should implement a review process that ensures all employee timecards with time charged to federal grants are approved. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will implement controls that require all time cards for individuals with time charged to federal grants to be approved by the grant supervisor.

Corrective Action Plan

CORRECTIVE ACTION PLAN July 20, 2023 Goodwill Industries of Michiana, Inc. respectfully submits the following corrective action plan for the year ended 2022. Audit Period: Year Ended December 31, 2022 SIGNIFICANT DEFICIENCY FINDING ? FEDERAL AWARDS 2022-003 ALLOWABLE COSTS Out of a sample of 25 timecards, 3 were lacking evidence of approval. The 3 timecards that were not approved were all for the same hourly employee charged to the grant each pay period. All of the employee?s wages pertained to federal grant activities. Recommendation: Management should implement a review process to ensure all employee timecards with time charged to federal grants are approved. Action Taken: The payroll administrator has implemented a process to run and review the weekly payroll approval report and follow up with all supervisors for any missing timecard approvals prior to submitting payroll for payment. Additionally, a complete review of timecards going back to January 1, 2023 will be conducted for all Federal Award programs and any missing approvals will be reviewed with the supervisor to ensure the time charged to the federal grant was proper. Contact Person: Karman Eash, CFO keash@goodwill-ni.org Effective Date: July 1, 2023

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 30147 2022-002
    Significant Deficiency
  • 30148 2022-002
    Significant Deficiency
  • 30149 2022-002
    Significant Deficiency
  • 30150 2022-002
    Significant Deficiency
  • 30152 2022-003
    Significant Deficiency
  • 606589 2022-002
    Significant Deficiency
  • 606590 2022-002
    Significant Deficiency
  • 606591 2022-002
    Significant Deficiency
  • 606592 2022-002
    Significant Deficiency
  • 606593 2022-003
    Significant Deficiency
  • 606594 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.994 Maternal and Child Health Services Block Grant to the States $1.04M
17.259 Wia Youth Activities $797,355
17.235 Senior Community Service Employment Program $314,039
84.282 Charter Schools $257,646
17.258 Wia Adult Program $214,232
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $44,657
84.425 Education Stabilization Fund $42,890
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $31,357
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $22,208
17.805 Homeless Veterans Reintegration Project $7,000
14.218 Community Development Block Grants/entitlement Grants $242