Finding Text
Finding 2022-002 Administration for Children and Families Federal Assistance Listing/CFDA #93.566, 2001SDRSOC, 10/01/2019 ? 9/30/2021 Federal Assistance Listing/CFDA #93.566, 2101SDRSSS, 10/01/2020 ? 9/30/2023 Refugee and Entrant Assistance ? State Administered Programs Allowable Costs / Costs Principles and Activities Allowed or Unallowed Significant Deficiency in Internal Control over Compliance Criteria: The Organization is required to have procedures in place to assure that federal awards are expended only for allowable costs in accordance with Subpart E ? Cost Principles of the Uniform Guidance. Allowable costs are supported by appropriate documentation and correctly charged as to account, amount, and period. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Two instances were identified in which the manual federal time tracker, tracks federal and non-federal hours for employees, used to allocate employee?s time across federal awards, was not reviewed and approved prior to completion of monthly direct and indirect cost allocations based on staff time by federal award. Cause: There was a lapse in oversight of the internal control process ensuring federal time trackers were reviewed and approved prior to preparation of monthly direct and indirect cost allocation. Federal time tracker was not reviewed and approved by the employee supervisor in a timely manner. Effect: Lack of compliance with designed internal controls over review of federal time trackers could result in the Organization charging costs at an incorrect allocated rate to the federal award. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 30 payroll disbursements out of a total of approximately 1,286 salary disbursements were tested which accounted for $17,635 out of $407,446 of salary disbursements. In addition, a nonstatistical sample of 4 employee benefit disbursements out of a total of approximately 4,796 employee benefit disbursements were tested which accounts for $29 out of $78,993 of employee benefit disbursements. Repeat Finding from Prior Year: Yes, prior year finding 2021-002 Recommendation: We recommend that management review the process over approving federal time trackers to ensure staff time by grant is reviewed prior to preparation of direct and indirect allocations of expenses. View of Responsible Officials: Management is in agreement.