Finding 391652 (2023-001)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-04-01

AI Summary

  • Core Issue: The agency's timesheet system fails to accurately reflect hours worked by program, violating federal requirements for salary allocation.
  • Impacted Requirements: Federal program 93.829 mandates that salary charges be based on actual employee activity documented in timesheets.
  • Recommended Follow-Up: Strengthen timekeeping policies and implement an integrated payroll system to ensure accurate tracking and allocation of employee hours.

Finding Text

Finding 2023-001, Timesheet – Timekeeping (Assistance Listing 93.829) Criteria: The federal program 93.829 requires that the distribution of salary and wages charged to federal awards be based on actual employee activity as reflected in personnel activity reports (timesheets), prepared after-the-fact, and includes the total activity for which employees were compensated. Condition and Context: The Agency’s current timesheet does not include the allocation of hours worked by program. Cause: Internal controls over the accurate distribution of hours on the timesheets were not operating effectively or designed properly. Effect: The timesheets do not support the allocation of time charged to the programs. Identification as a repeat finding: Yes. Questioned costs: None. Recommendation: We recommend that the Agency strengthen its policies and procedures for the timekeeping and distribution of the employees’ hours in accordance with the requirements of the federal programs. View of responsible officials: WJCS implemented weekly manual timesheets to track staff time and attendance on Federal contracts. These timesheets are used to appropriately allocate salaries and wages to federal awards. However, these timesheets are not integrated into a standard agency-wide payroll processing system. In automated systems, timesheets are embedded in an organization’s time and attendance and payroll system. In the first quarter of 2023 WJCS commenced the process of assessing system options and to implement an agency-wide time and attendance system for all WJCS employees. This includes working with our existing payroll processor, and engaging payroll consultants to ensure comprehensive timekeeping, including maintaining the allocation of hours worked by program for all employees. Utilizing these enhancements to payroll tracking will allow WJCS to completely and accurately allocate payroll costs to grants with fewer mechanical steps which increase the risk of miscalculations.

Corrective Action Plan

Corrective Action Plan For the Fiscal Year Ended June 30, 2023 Section III – Federal Awards Findings and Questioned Costs Finding 2023-001, Timesheet – Timekeeping (Assistance Listing 93.829) Persons Responsible: Irene Math, Chief Financial Officer, John Harrington Controller Comment: The federal program 93.829 requires that the distribution of salary and wages charged to federal awards be based on actual employee activity as reflected in personal activity reports (timesheets), prepared after-the-fact, that include the total activity for which employees were compensated. Response: WJCS implemented weekly manual timesheets to track staff time and attendance on Federal contracts. These timesheets are used to appropriately allocate salaries and wages to federal awards. However, these timesheets are not integrated into a standard agency-wide payroll processing system. In automated systems, timesheets are embedded in an organization’s time and attendance and payroll system. In the first quarter of 2023 WJCS commenced the process of assessing system options and to implement an agency-wide time and attendance system for all WJCS employees. This includes working with our existing payroll processor, and engaging payroll consultants to ensure comprehensive timekeeping, including maintaining the allocation of hours worked by program for all employees. Utilizing these enhancements to payroll tracking will allow WJCS to completely and accurately allocate payroll costs to grants with fewer mechanical steps which increase the risk of miscalculations. In the interim WJCS updated the existing manual process to include the allocation of hours worked by program. Estimated Completion Date: The agency-wide time and attendance system will be implemented by November, 2024.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 391653 2023-001
    Significant Deficiency
  • 391654 2023-001
    Significant Deficiency
  • 391655 2023-001
    Significant Deficiency
  • 391656 2023-001
    Significant Deficiency
  • 391657 2023-001
    Significant Deficiency
  • 968094 2023-001
    Significant Deficiency Repeat
  • 968095 2023-001
    Significant Deficiency
  • 968096 2023-001
    Significant Deficiency
  • 968097 2023-001
    Significant Deficiency
  • 968098 2023-001
    Significant Deficiency
  • 968099 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.30M
16.575 Crime Victim Assistance $559,464
93.696 Certified Community Behavioral Health Clinic Expansion Grants $366,375
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $336,797
93.667 Social Services Block Grant $175,231
93.590 Community-Based Child Abuse Prevention Grants $148,282
84.287 Twenty-First Century Community Learning Centers $114,603
93.498 Provider Relief Fund $82,715
93.052 National Family Caregiver Support, Title Iii, Part E $76,311
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $69,301
84.424 Student Support and Academic Enrichment Program $51,103
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $33,892
84.027 Special Education_grants to States $14,400
93.958 Block Grants for Community Mental Health Services $8,000
84.425 Education Stabilization Fund $6,250
14.218 Community Development Block Grants/entitlement Grants $4,380
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $4,150
16.888 Consolidated and Technical Assistance Grant Program to Address Children and Youth Experiencing Domestic and Sexual Violence and Engage Men and Boys As Allies $1,693