Finding Text
Finding # 2024-002
Type: Material weakness
Type: Material noncompliance over allowable costs
A.L. Number: 21.027
Requirement:
Personnel expenses charged to federal awards must be supported records that reflect the time worked charged to the award.
Condition:
The Organization charged personnel expenses based on approved budgeted amounts in the award agreement.
Context:
Certain personnel time was charged to the award without documentation to support time and effort spent on the program.
Cause:
Organization personal were not aware of the time and effort tracking requirements for federal awards.
Effect:
Personnel costs could be charged to program for 1) work that was not performed on the program and 2) expenses covered by another funding source.
Questioned Costs:
Unknown
Recommendation:
We recommend the Organization implement a time and effort system to track employee time. This is typically done in a timesheet format that tracks all time worked by an employee, including programmatic and administrative time.
Management’s Response:
Management agrees with the finding. Management will work with the human resources function and payroll department to implement a system of time and effort tracking.