Finding 2024-001 – U.S. Department of Commerce (significant deficiency):
We noted the following in connection with our compliance testing of time and effort reports:
a) We noticed that nine (9) of 18 time and effort reports tested had incomplete and/or
inaccurate percentage calculations.
b) Personnel Action Forms provided for six (6) of 18 time and effort reports did not
specify pay allocations for employee salaries to the grant.
c) The employee signature on three (3) time and effort reports provided for one (1)
employee did not appear authentic.
d) Three (3) time and effort reports provided for one (1) employee were not
approved by a supervisor.
e) One (1) time and effort report and corresponding payroll register specified salaries
chargeable to a different grant but the expense was charged to the Connecting Minority
Communities (CMC) grant.
Auditor’s Recommendation – The College should implement corrective actions to ensure that
the above findings are resolved and will not recur in future periods.
Corrective Action – The College accepts the auditor’s recommendations. Following the
receipt of the recommendation, College staff (the VP for Business and Finance, the Director
of Human Resources, the Director of Sponsored Programs, and the CMC Grant PI) met to
review and discuss the findings. During the meeting, staff discussed the college’s processes
for completion of time and effort documents: • The Grant PI will be responsible for ensuring that the faculty and staff assigned to work
on the grant have turned in a time and effort document for each month worked.
o The document will be signed by the employee.
o The employee will review his/her document for accuracy.
o The employee will submit his/her document to appropriate person for review and
signature.
o The supervisor and/or Grant PI will review the time and effort document for accuracy
prior to signing.
o The employee and Grant PI will be responsible for keeping a signed copy of the
document in their records.
• The Director of Sponsored Programs will be responsible for ensuring that the Grant PI
has submitted signed copies of the time and effort documents for employees working on
a grant.
• The Director of Sponsored Programs will also:
o Review time and efforts for accuracy. If documents are inaccurate, the Director
of Sponsored Programs will notify the Grant PI. The Grant PI will be responsible
for ensuring that staff working on the grant make corrections to their document,
sign the document, and resubmit the document for approval. o The Director of Sponsored Programs will assign the Grant PI a deadline for
resubmitting corrected documents. If documents are not received by the deadline,
the Director of Sponsored Programs will notify the Director of Human Resources
who will adjust the employee’s salary. If the Director of Human Resources is
unable to adjust the employee’s salary, he/she will make an adjusting transaction
to reallocate the percentage of time that was charged to the grant, then notify the
Vice President for Business and Finance. The Vice President for Business and
Finance will adjust the amount of funds requested for draw or prepare a request
to return drawn funds.
• The Director of Human Resources will:
o Confirm with the Grant PI the percentage of time each employee should be
charged on a grant.
o Ensure all Personnel Action forms have the correct percentages of time
allocated for employees working on a grant.
o Confirm with the Sponsored Program Director that all time and efforts
have been submitted correctly.
o Adjust the salaries of employees who are non-compliant with time and efforts.
o Advise the Vice President of Business and Finance of any changes made or
needed to employee’s salaries so that drawn funds can be returned or requests
for draws will be adjusted. • The Vice President for Business and Finance will:
o Work with Grant PI to obtain a list of all employees assigned to work on
grant w/percentages of time.
o Review Personnel Action forms for accuracy of time percentages provided.
o Review Labor transactions for accuracy and make adjusting entries if necessary.
o Return funds to awarding agency if necessary.