Finding 369439 (2023-002)

2023-002 Federal agency: U.S. Department of Justice Federal program title: Crime Victim Assistance Assistance Listing Number: 16.575 Pass-Through Agency: Minnesota Office of Justice Programs Type of Finding: - Material Weakness in Internal Control Over Compliance - Other Matters Criteria or specific requirement: CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, §200.430 specifies that charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: Documentation of time and effort was not maintained for 1 out of 20 employees tested under the program to support the amounts charged to grants. In addition, none of the timesheets selected for testing had formal documentation of review or approval. Questioned Costs: $11,538 Context: We tested 66 timesheets for 20 different individuals who charged time to the grant during the period tested. Time and effort documentation was not maintained for 4 out of 66 timesheets selected for testing under the program, which related to one individual. None of the timesheets selected for testing had formal documentation of review or approval. Cause: Proper internal control processes and procedures were not in place to document personnel time charged to the grant. Effect: Program could be over or under billed if time and effort is not calculated correctly from employee certifications or supported by approved timesheets. Recommendation: We recommend that WON implement a process to complete time and effort certifications and reconcile those certifications to ensure the costs reported to the grantor are accurate. We recommend that all additional amounts paid contain documentation that they are properly authorized. We recommend that all employees have timesheets to support the hours worked and charged to the grant. These timesheets should be formally approved by a supervisor. Views of responsible officials: WON will ensure that all timesheets are completed and properly approved going forward to ensure that time and effort is documented.