Finding Text
Department of Health and Human Services
Temporary Assistance for Needy Families (TANF), Federal Assistance Listing # 93.558
Pass Through Virginia Department of Social Services, Pass Through Entity Identifying Number BEN-21-054
Type of Finding: Material Weakness in Internal Control over Compliance with Federal Awards and Material Noncompliance
Criteria: The Organization should have effective internal controls in place over tracking of employee time to federal grants and contracts, for the Activities allowed/Allowable costs compliance requirement, per 2 CFR 200.430(i).
Condition: During the FY 2022 audit, it was noted that while employee timesheets were maintained, the timesheets did not document time allocable to federal programs. Rather, timesheets related to the federal program reflected a percentage allocation equal to or less than the approved budget.
Context: During testing 10 out of the 20 individuals tested did not have appropriate timesheet coding. The sample was not intended to be, and was not, a statistically valid sample.
Cause/Effect: Internal control processes over payroll did not detect that employee timesheets did not appropriately capture time specifically chargeable to federal programs.
Questioned Costs: $70,982, which was comprised of payroll charges to BEN TANF program for the 10 of 20 individuals tested whose timesheets did not reflect time charged to the BENTANF program.
Identification of Repeat Finding: N/A
Recommendation: We recommend that Cornerstones implements a system to properly track time charged to federal programs. In addition, we recommend that management implements internal controls to review and ensure that employee timesheets possess contemporaneous documentation of time spent on individual federal programs. Timesheets should be reviewed and approved in writing by employees’ supervisors.
Views of Responsible Officials and Correction Action:
Management’s response is reported in “Management’s Views and Corrective Action Plan” included at the end of this report.