Finding 397987 (2023-010)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-05-20
Audit: 306700
Auditor: Wegner CPAS

AI Summary

  • Core Issue: Employees reported identical hours and activities daily, leading to potential inaccuracies in federal program cost allocations.
  • Impacted Requirements: Time and effort documentation must accurately reflect actual work performed, supported by approved timecards and activity reports.
  • Recommended Follow-up: Implement a written policy for time and effort reporting to ensure compliance with grantor requirements and accurate recordkeeping.

Finding Text

Assistance Listing Number(s): 21.027 Name of Federal Program or Cluster: COVID-19 Coronavirus State and Local Fiscal Recovery Funds Name of Federal Agency: Department of the Treasury Name of Pass-through Entity: City of Madison, City of Sun Prairie, Wisconsin Department of Workforce Development Award Period: January 1, 2022 through December 31, 2022; September 22, 2021 through December 31, 2024; June 20, 2022 through June 30, 2025 Significant Deficiency: As discussed in Finding 2023-004, salaried employees reported exactly 8 hours every day for the pay period and numerous employees reported the exact same split of activities every day of the pay period. Because employees are not reporting all time for activities in which they are compensated, costs charged to federal programs may not be equitable and allowable. Procedures should be designed and implemented to meet grantor requirements and recordkeeping requirements of the organization. Repeat Finding: No Criteria: Charges to awards for salaries and wages are to be supported by approved timecards and activity reports. Accurate supporting backup includes timecards/activity reports signed by employees and their supervisors. Time and effort documentation must reasonably reflect the total activity for which the employee is compensated for. Condition: Timecards for numerous salaried employees reported exactly 8 hours every day for the pay period. In addition, numerous employees reported the exact same split of activities every day of the pay period. Cause: A written policy and procedure over time and effort reporting was not designed and implemented. Effect or Potential Effect: Failure to maintain appropriate records on eligible expenses may result in repayment for the portion of funds in question. Recommendation: Timecards should reflect all time or 100% effort of each employee’s total hours actually spent on work within the scope of his or her employment regardless of how many or how few hours an employee works. Effort certification must reflect actual work performed and cannot be budget driven or assigned. A written time and effort policy and procedures should be designed and implemented to meet grantor requirements and recordkeeping requirements of the organization. Views of Responsible Officials: Boys and Girls Club of Dane County, Inc. agrees with the finding and is implementing a cost allocation plan and review process over time and effort.

Corrective Action Plan

Recommendation: Timecards should reflect all time, or 100% effort of each employee’s total hours actually spent on work within the scope of his or her employment regardless of how many or how few hours an employee works. Effort certification must reflect actual work performed and cannot be budget driven or assigned. A written time and effort policy and procedures should be designed and implemented to meet grantor requirements and recordkeeping requirements of the organization. Ac􀆟on Taken: A cost allocation plan has now been established and will be reviewed by our Board. Timecards for all staff, including salaried staff, are now being filled out with actual hours spent per grant versus budgeted hours and for each grant coded, there are high level comments to explain what work was accomplished for the grant. There is also now a Financial Specialist on staff that reviews timecards for accuracy in this regard. The contact person responsible for this corrective action plan is Wendi Speed, CFO, as well as the HR team that will implement the policy. The anticipated completion date is June 30, 2025.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Reporting Significant Deficiency

Other Findings in this Audit

  • 397982 2023-005
    Material Weakness
  • 397983 2023-006
    Material Weakness
  • 397984 2023-007
    Material Weakness
  • 397985 2023-008
    Material Weakness
  • 397986 2023-009
    Material Weakness
  • 397988 2023-005
    Material Weakness
  • 397989 2023-006
    Material Weakness
  • 397990 2023-007
    Material Weakness
  • 397991 2023-008
    Material Weakness
  • 397992 2023-009
    Material Weakness
  • 397993 2023-010
    Significant Deficiency
  • 397994 2023-005
    Material Weakness
  • 397995 2023-006
    Material Weakness
  • 397996 2023-007
    Material Weakness
  • 397997 2023-008
    Material Weakness
  • 397998 2023-009
    Material Weakness
  • 397999 2023-010
    Significant Deficiency
  • 974424 2023-005
    Material Weakness
  • 974425 2023-006
    Material Weakness
  • 974426 2023-007
    Material Weakness
  • 974427 2023-008
    Material Weakness
  • 974428 2023-009
    Material Weakness
  • 974429 2023-010
    Significant Deficiency
  • 974430 2023-005
    Material Weakness
  • 974431 2023-006
    Material Weakness
  • 974432 2023-007
    Material Weakness
  • 974433 2023-008
    Material Weakness
  • 974434 2023-009
    Material Weakness
  • 974435 2023-010
    Significant Deficiency
  • 974436 2023-005
    Material Weakness
  • 974437 2023-006
    Material Weakness
  • 974438 2023-007
    Material Weakness
  • 974439 2023-008
    Material Weakness
  • 974440 2023-009
    Material Weakness
  • 974441 2023-010
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $798,720
93.558 Temporary Assistance for Needy Families $91,755
17.261 Wia Pilots, Demonstrations, and Research Projects $68,787
84.425 Education Stabilization Fund $29,384
94.006 Americorps $26,125
14.218 Community Development Block Grants/entitlement Grants $18,750
93.268 Immunization Cooperative Agreements $10,954
16.726 Juvenile Mentoring Program $5,901