Finding Text
Material Weakness Finding 2022-001
Condition – Even though Restoration Society, Inc. (RSI) costs were allowable under these
federal awards, documentation of adequate allocation methods of costs were not maintained
for payroll. Management estimated amounts charged to federal programs in lieu of obtaining
adequate documentation via time and attendance records.
Criteria – Adequate documentation of actual time and effort spent on each federal award
program is necessary to comply with various provisions of contract agreements with Federal
agencies.
Cause – Due to turnover and other priorities, detailed time and attendance records were not
maintained.
Effect – Inaccurate payroll expenditure reporting throughout the fiscal year.
Recommendation – We recommend that the accounting department implement controls and
procedures to require staff to submit time and attendance records indicating which federal
programs they spent time on.
Management’s Response – Management acknowledges the recommendation and has started
implementing controls consistent with the recommendation.