Finding 45036 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-10-01

AI Summary

  • Core Issue: Missing documentation for employee hours review during one pay period.
  • Impacted Requirements: Lack of controls over compensation documentation as per grant criteria.
  • Recommended Follow-Up: Establish a formal process for documenting supervisor reviews using ADP payroll software.

Finding Text

US Department of Health and Human Services Passed through the Idaho Department of Health & Welfare Program Name: Child Care & Development Block Grant Assistance Listing No.: 93.575 Grant Number: 2101IDC6 Finding: 2022-003 SIGNIFICANT DEFICIENCY Allowable Costs/Cost Principals Criteria: Compensation from time and effort charged to the grant should have documentation of controls performed over the review of employee hours. Condition: During testing of payroll, there was one pay period where documentation over the review of hours was unavailable. Questioned Costs: N/A Context: We tested 18 of the 24 pay periods of the year, from those 18 pay periods tested, only one had documentation unavailable. Effect: No documentation over the review of employee hours. Cause: There is not a formal process to document and retain the review of employee hours. Recommendation: We recommend formalizing the documentation of supervisor review, such as utilizing the available functions in the ADP payroll software.

Corrective Action Plan

Views of responsible officials and planned corrective actions: Boys & Girls Club has procedure for payroll but recognizes it?s informality. There are features in ADP that we will be implementing including having all employees use the "approve timecard" feature to verify that their time is accurate for each pay period before payroll is submitted each pay period. Supervisors will be required to review all time entries and approve them before the payroll can be processed. This will be documented by using the "approve timecard" feature added to our payroll system. Allocation of time spent in specified efforts for a grant will be designated in the appropriate department on the employee timecard. The Finance Director will designate payroll costs to a grant by using the "class" feature in QuickBooks for all payroll expenditure and generate a payroll summary from the payroll system to be kept with other grant documentation.

Categories

Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 45034 2022-001
    Material Weakness
  • 45035 2022-002
    Significant Deficiency
  • 621476 2022-001
    Material Weakness
  • 621477 2022-002
    Significant Deficiency
  • 621478 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.575 Child Care and Development Block Grant $1.00M
10.558 Child and Adult Care Food Program $64,462