Finding Text
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries and related expenditures were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The reallocations were made via journal entries in which no additional supporting documentation was present to justify the reallocation of expenditures. Cause: Journal entries were used to reallocate salaries and related expenses without justification documentation and journal entries recorded were not reviewed or approved by someone other than the person authorized to record the journal entry. Effect: Because of the failure to follow BFCAC?s policy of allocating salaries and related expenditures based on time charged and documented, expenditures were reallocated with no justification or documentation to support the reallocation. Recommendation: BFCAC needs to consistently follow its allocation methodology regarding salaries and related expenditures which allocates these expenditures based on supporting approved timesheets for hours worked. If any adjustments are deemed necessary, approved documentation should be present to support the changes and the journal entries should be reviewed and approved by the approving program manager or executive director. Questioned Costs: Undeterminable