Finding 386417 (2023-002)

Grant: ALN 16.812 Second Chance Action Reentry Initiative Finding No 2023-02: Cash Management Condition Salaries and wages charged to the federal award were based on preliminary time and effort estimates. Employees and clinical staff track their time by the grant/program but actual time was not reconciled to the preliminary time and effort estimates before billed. Context Time charges to the federal award were based upon estimates established by SPVMHC through the grant budgeting process. While timesheets were prepared by employees, which denoted time and effort related to each grant, the actual time and effort was not charged to the grant. Criteria Under the Uniform Guidance, time and effort records must be supported by a system of internal controls which provides reasonable assurance that charges are accurate, allowable and allocable and incorporated in the official records. Cause Consistent procedures have not been developed to require actual time and effort to be billed to grants rather than preliminary estimates. Effect The federal award may be overcharged or undercharged if actual time and effort differs from preliminary estimates. Questioned Costs Unknown Repeat Finding No Recommendation We recommend that management establish policies and procedures that are consistent with the Uniform Guidance administrative requirements with regards to compensation and allocable costs which includes ensuring time and effort charges are based on records that accurately reflect the work performed. Views of Responsible Officials and Planned Corrective Action See corrective action plan.