Finding Text
Criteria: The Organization’s internal control procedures over compliance stipulates that all time sheets be approved by the appropriate level of management.
Condition: During allowable cost testing for federal grants, 3 out of the 70 payroll transactions tested did not have adequate time sheet approvals. These time sheets were self approved.
Cause: The Organization had not implemented a segregation of duties surrounding time sheet approvals.
Effect: The Organization’s reporting of time and effort was not fully documented, in accordance with internal control over compliance procedures.
Questioned costs: None
Recommendation: The Organization should segregate duties for time sheet approvals so that no time sheets are self approved.
Management’s response: See corrective action plan.