Finding 502031 (2023-005)

2023 – 005 Payroll Disbursements Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Head Start Assistance Listing Number: 93.600 Federal Award Identification Number and Year: N/A Pass-Through Agency: City of Chicago Department of Family and Support Services & Start Early Pass-Through Number(s): 1130806/181206/189365/190275; 05CH011953-ELH23-03 Award Period: Start Early: 1/1/22-12/31/22; 1/1/23-12/31/23; City of Chicago: 113806: 12/1/2019-11/30/22; 181206/189365/190275: 4/1/22-11/30/22 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Organization is required to established controls so that employees compensated with grant funds have their wages reflect actual time and effort performed. Condition: We noted that three employees had variances between actual compensation and what was expected according to the documentation of their approved salary or wage rate. Questioned Costs: ALN 93.600: $197 Context: For the 49 payroll disbursements tested, we observed documentation of the employee's approved wage rate. We performed a recalculation of the disbursements to those employees per the payroll register for that period using the approved rate and the hours per the employee's timesheet. For three disbursements, the recalculation varied from the disbursement. Cause: Internal controls over compliance with the Uniform Guidance were not followed. Section III – Findings and Questioned Costs – Major Federal Programs (Continued) 2023 – 005 Payroll Disbursements (Continued) Effect: Inaccurate payroll costs may be charged to federal programs if the Agency does not have procedures in place to monitor and record employee time devoted to federal programs. Repeat Finding: The finding is not a repeat finding. Recommendation: Management should continue to follow established controls to ensure the appropriate compensation of its employees at approved rates. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with this finding.