Finding Text
Condition: Per employee time sheets, the payroll allocated to this
program for the pay periods selected, was less than the payroll charged to
the program and requested for reimbursement.
Criteria: Federal funds should be expended only for allowable activities and allowable costs.
Cause: Employee time sheets are not being completed correctly or adjusted
upon review to reflect the accurate department / program allocation of hours worked.
Effect: There was no documentation to support the amounts charged to this
department / program and requested for reimbursement under this grant. The
grant was billed for a non-allowable activity and a non-allowable cost, which could be disallowed.
Context: A sub-sample of 19 payroll expenditures charged to the grant
totaling $30,931 were selected from a population totaling $175,472. The
test found 13 expenditures that were not in compliance resulting in
questioned costs of $14,353. Our sample was a statistically valid sample.
Recommendation: Closer attention should be paid when summarizing
and reviewing employee time sheets to ensure they accurately reflect the
allocation of hours worked. Adjustments should be made as needed and
the employee should be notified of any changes. In addition, grants should
only be billed for actual payroll allocated as documented on the time sheet.
This will ensure the proper charging of payroll to departments / programs
and reduce the risk of billing for a non-allowable activity or a non-allowable cost.
Views of Responsible Officials and Planned Corrective Actions: AACA
agrees with the finding and the recommendations will be implemented.