Finding Text
Finding 2023-006 – Allowable Costs - Payroll costs (Material Weakness and Noncompliance)
Information on the federal program: U.S. Department of Veterans Affairs, Assistance Listing
#64.055 Staff Sergeant Parker Gordon Fox Suicide Prevention Grant Program; U.S. Department of
Health and Human Services, Assistance Listing #93.137 Community Programs to Improve Minority
Health Grant Program; and U.S. Department of Health and Human Services, Assistance Listing
#93.243 Substance Abuse and Mental Health Services Projects of Regional and National
Significance.
Criteria: 2 CFR section 200.302 establishes the requirements for sufficient financial management
over grant funding to ensure records adequately identify the source and application of funds for
federally-funded activities. These records must contain information pertaining to Federal awards,
authorizations, financial obligations, unobligated balances, assets, expenditures, income and
interest and be supported by source documentation.
Condition: We tested 78 payroll disbursements over 3 grant programs. Of those 78, 9 exceptions
were noted. The amount of time and corresponding amounts allocated to the grant did not agree to
the percentage documented on the employee’s timesheet.
Cause: Employee timesheets are turned in after payroll is processed and allocations made,
timesheets in these exceptions did not agree to the amount allocated.
Effect: The Council did not comply with financial management requirements.
Questioned Costs: None
Recommendation: We recommend the Council strengthen procedures surrounding payroll so that
the source documentation properly supports the amounts being allocated to the grant based on
actual employee time.
Views of Responsible Officials: See Management’s View and Corrective Action Plan at the end of
the report.