Finding Text
2022-002 ? Significant Deficiency in Internal Control Over Major Federal Programs Program Information: Federal Agency: U.S. Department of Health and Human Services (passed through Nebraska Department of Health and Human Services) Federal Program Title: Special Programs for the Aging Cluster (AL #93.044 Title IIIB-Grants for Supportive Services and Senior Centers, AL #93.045 COVID-19-Title III C-1, C-2-Nutrition Services, AL #93.045 Title III C-1, C-2-Nutrition Services, AL #93.053 Nutrition Services Incentive Program) Grant Award Period: July 1, 2021 through June 30, 2022 Condition: Adequate controls were not in place to ensure the Organization properly tracked employee time worked by program. As a result, payroll expenses have possibly been allocated incorrectly to programs. Criteria: Management is responsible for establishing adequate internal controls to ensure employees properly track time worked by program. Cause: The Organization?s time tracking software allows employee time worked to be allocated to administration duties or time off and those hours are then allocated by program based on how the allocated time was spent in that pay period. Effect: Because of the lack of proper tracking of employee time worked, payroll expenses have possibly been allocated incorrectly to programs. Recommendations: We recommend management implement adequate internal controls to ensure allowable general and administrative employee time is allocated based on a continuous average of allocated hours by program. Management should also review cost allocation plan methods to be sure they are in accordance with the requirements of the Uniform Guidance. View of Responsible Officials and Planned Corrective Actions: The Organization is committed to properly tracking and allocating Federal expenditures. The Organization has created adequate internal control processes to ensure general and administrative time is allocated based on a monthly average of allocated hours by program.