Finding Text
Retention of Files and Records - Criteria:
CFR 200.430 Compensation - Records of salaries must be supported by a system of internal
control which provides reasonable assurance that the charges are accurate, allowable, and
properly allocated. These records should include timesheets, or other time records that are
signed and approved by the appropriate personnel to confirm that the time is accurate. Condition and Context:
In testing the compliance and accuracy of allowable payroll costs during the award year, it was
noted that the Organization did not maintain certain appropriate documentation of time and
effort, specifically timesheets showing the review and approval process for certain employees
during the award year. Questioned Costs: None. Cause: The Organization has policies and procedures in place to ensure that the appropriate
documentation for time and effort is maintained and supported by a system of internal control.
However, in this case the procedures were not adhered due to turnover in key employees and
change in payroll providers.
Effect:
The absence of documentation that supports the review and approval process of time and effort
reporting makes it difficult for management to substantiate that the payroll charges are accurate
and could lead to non-compliance with Federal requirements.
Perspective Information:
We tested 25 timesheets. Of those selections 1 timesheet was missing and 1 timesheet did not
have the proper approval. The sampling methodology used was a statistically valid sample.
Recurring Finding:
No. Recommendation:We recommend that the Organization modify its policies and procedures relating to time and
effort reporting to align with any changes in payroll processes and any changes in personnel at
the Organization to ensure that appropriate support is maintained at all times at the
Organization.