Finding Text
Condition: Amount of salaries allocated to federal programs are not consistently supported by employee timesheets or other similar documentation.
Cause: There are limited procedures in place that require reconciliation of actual hours expended to the program.
Effect: Since employee salaries were not reconciled, it is possible that employees' time and related costs may be inappropriately allocated amongst functional activities, including cost allocations to federal awards program. This could result in noncompliance with the Uniform Guidance.
Context: This condition occurred in 5 out of 23 payroll transactions selected for testing, whereby the payroll allocation was not reconciled to the general ledger.
Recommendation: Existing timesheet reconciliation procedures should be revised. The organization should reconcile employee timesheets to amounts allocated to the grants on, at minimum, a quarterly basis, and ideally, on a monthly basis prior to the submission of vouchers or funding requests.
Views of Responsible Officials: The Organization agrees with the finding, see corrective action plan.