Finding Text
Finding No. 2022-002 ? Salaries and Benefits Not Supported by Proper Time and Effort Documentation Federal Program: Crime Victim Assistance Project No: 219001 and 216001 CFDA No: 16.575 Passed Through: Illinois Coalition Against Domestic Violence and Illinois Coalition Against Sexual Assault Federal Agency: U.S. Department of Justice Criteria/Specific Requirement: Employees of Survivor Empowerment Center, Inc. are required to document their time and effort working on federal programs. Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires charges for salaries and benefits to be supported by a system of internal control which provides reasonable assurance that charges are accurate, allowable, and properly allocated. Documentation records should reasonably reflect the total activity for which the employee is compensated, not exceeding 100% of compensated activities, and should encompass both federally assisted and non-federally assisted activities. It further states that budget estimates alone do not qualify as support for salary and benefit charges to a federal award. Significant changes in the corresponding work activity should be identified and entered into the accounting records in a timely manner. All necessary adjustments must be made such that the final amount charged to the federal award is accurate, allowable, and properly allocated. Condition: During our testwork, we noted the following: ? Two employee?s timesheets did not reflect the correct allocation percentages determined by the Organization, and ? One employee did not have a time and effort certification submitted during the 4th quarter of 2022. Questioned Costs: None Context: Time and effort documentation was not correctly maintained for three of the seventeen employees tested. Effect: Although time and effort documentation was maintained for employees, there is an increased risk that the salary and benefit costs charged to the Crime Victim Assistance program does not reflect the actual time worked on the programs. Cause: Lack of oversight over the implementation of time and effort documentation. Auditors? Recommendation: The Survivor Empowerment Center, Inc. should implement a review process over time and effort documentation to ensure that all employees charged to the grant have proper documentation. Management?s Response: There was not a consistent person performing payroll during FY22. There was a lot of turnover and position changes. The Assistant Director was training and handing off duties to the new HR Specialist that started in December of 2021. The Fiscal Manager also helped with the payroll duties; therefore, many hands were in the process with no structure. All of the above resulted in the oversite of the changing of the allocation on the timesheets.