Finding 538335 (2024-004)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-03-27

AI Summary

  • Core Issue: Timesheets and time reports lack supervisor approval, violating federal requirements for internal controls.
  • Impacted Requirements: Noncompliance with 2 CFR Part 200, which mandates effective internal controls for managing federal awards.
  • Recommended Follow-up: Enforce policy for physical signatures on timesheets to ensure allowable salary costs for federal programs.

Finding Text

Material Weakness Federal Program(s): Research and Development Cluster Mental and Behavioral Health Education and Training Grants Assistance Listing Number(s): Research and Development Cluster • 11.417 • 12.420 • 12.905 • 84.116Z • 84.019A • 47.076 • 47.050 Mental and Behavioral Health Education and Training Grants • 93.732 Criteria: Auditee requirements contained in Title 2 U.S. Code of Federal Regulations (2 CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart D – Post Federal Award Requirements, Section 200.303 – Internal Controls, requires the auditee to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with a framework such as the “Internal Control Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Timesheets and time and effort reports used to track time spent on federal programs did not have approval signatures by the employee’s supervisor. Cause: Ineffective design and implementation of internal controls around approval of timesheets and time and effort reports. Effect or Potential Effect: Ineffective control procedures could result in unallowable costs or activities being charged to federal grant programs. Questioned Costs: None Context: In our sample of 10 payroll transactions of amounts charged to the Research and Development Cluster, 9 of the timesheets or time and effort reports did not have physical indication of review by their supervisors. In our sample of 6 payroll transactions of amounts charged to the Mental and Behavioral Health Education and Training grants, none of the timesheets or time and effort reports had physical indication of review by their supervisors. Repeat Finding: No Recommendation: We recommend the College enforce its policy to have physical signatures on each employee’s timesheet or time and effort report after the review takes place to ensure salary costs charged to the federal program are allowable. Views of Responsible Officials: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Identifying Number: Finding No. 2024-004 – Payroll Controls around Timesheets/Time and Effort Reports Finding: Timesheets and time and effort reports used to track time spent on federal programs did not have approval signatures by the employee’s supervisor. Corrective Actions Taken or Planned: Responsible Official: Jaime Cacciola, Director of Grants; Tim Pollak Director of Finance Anticipated Completion Date: March 31, 2025 View of Responsible Individuals: Timesheets will be reviewed bi-weekly for electronic signatures of supervisor/PI. Any missing signatures will require manual signature by PI. Our updated Time & Effort policy and procedures, includes the following: Time & Effort Certification On an annual basis, principal investigators (PIs) on federally funded awards must confirm that the salaries and wages of individuals charged to their respective projects are reasonable, allowable, properly allocated, and accurate based on the work performed. Throughout the year, though, PIs must regularly review compensation reports to ensure that the final amounts charged to federal awards are reasonable, accurate, allowable, and properly allocated. This regular monitoring of payroll charges throughout the budget period is central to Hood’s compliance program. The annual time and effort reports cover August 15th – August 14th and are released for review and signature after the fiscal year end close process is complete. Signed reports should be returned to the GRASP Office by August 31st. Who Needs to Complete: • All salaried employees working on the project should complete a report. • Hourly employees and student workers are not required to complete a time and effort certification as their time is certified via time sheets. PIs must also review and certify all of their workers’ time sheets by providing a signature on the document.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 538324 2024-002
    Material Weakness
  • 538325 2024-002
    Material Weakness
  • 538326 2024-002
    Material Weakness
  • 538327 2024-002
    Material Weakness
  • 538328 2024-002
    Material Weakness
  • 538329 2024-002
    Material Weakness
  • 538330 2024-002
    Material Weakness
  • 538331 2024-002
    Material Weakness
  • 538332 2024-002
    Material Weakness
  • 538333 2024-002
    Material Weakness
  • 538334 2024-003
    Material Weakness
  • 538336 2024-004
    Material Weakness
  • 538337 2024-004
    Material Weakness
  • 538338 2024-004
    Material Weakness
  • 538339 2024-004
    Material Weakness
  • 538340 2024-004
    Material Weakness
  • 538341 2024-004
    Material Weakness
  • 538342 2024-004
    Material Weakness
  • 538343 2024-004
    Material Weakness
  • 538344 2024-004
    Material Weakness
  • 538345 2024-004
    Material Weakness
  • 538346 2024-005
    Material Weakness
  • 538347 2024-005
    Material Weakness
  • 538348 2024-006
    Significant Deficiency
  • 538349 2024-007
    Significant Deficiency
  • 538350 2024-007
    Significant Deficiency
  • 538351 2024-007
    Significant Deficiency
  • 538352 2024-007
    Significant Deficiency
  • 538353 2024-007
    Significant Deficiency
  • 538354 2024-007
    Significant Deficiency
  • 538355 2024-007
    Significant Deficiency
  • 538356 2024-008
    Significant Deficiency
  • 538357 2024-008
    Significant Deficiency
  • 538358 2024-008
    Significant Deficiency
  • 538359 2024-008
    Significant Deficiency
  • 538360 2024-008
    Significant Deficiency
  • 538361 2024-008
    Significant Deficiency
  • 538362 2024-008
    Significant Deficiency
  • 1114766 2024-002
    Material Weakness
  • 1114767 2024-002
    Material Weakness
  • 1114768 2024-002
    Material Weakness
  • 1114769 2024-002
    Material Weakness
  • 1114770 2024-002
    Material Weakness
  • 1114771 2024-002
    Material Weakness
  • 1114772 2024-002
    Material Weakness
  • 1114773 2024-002
    Material Weakness
  • 1114774 2024-002
    Material Weakness
  • 1114775 2024-002
    Material Weakness
  • 1114776 2024-003
    Material Weakness
  • 1114777 2024-004
    Material Weakness
  • 1114778 2024-004
    Material Weakness
  • 1114779 2024-004
    Material Weakness
  • 1114780 2024-004
    Material Weakness
  • 1114781 2024-004
    Material Weakness
  • 1114782 2024-004
    Material Weakness
  • 1114783 2024-004
    Material Weakness
  • 1114784 2024-004
    Material Weakness
  • 1114785 2024-004
    Material Weakness
  • 1114786 2024-004
    Material Weakness
  • 1114787 2024-004
    Material Weakness
  • 1114788 2024-005
    Material Weakness
  • 1114789 2024-005
    Material Weakness
  • 1114790 2024-006
    Significant Deficiency
  • 1114791 2024-007
    Significant Deficiency
  • 1114792 2024-007
    Significant Deficiency
  • 1114793 2024-007
    Significant Deficiency
  • 1114794 2024-007
    Significant Deficiency
  • 1114795 2024-007
    Significant Deficiency
  • 1114796 2024-007
    Significant Deficiency
  • 1114797 2024-007
    Significant Deficiency
  • 1114798 2024-008
    Significant Deficiency
  • 1114799 2024-008
    Significant Deficiency
  • 1114800 2024-008
    Significant Deficiency
  • 1114801 2024-008
    Significant Deficiency
  • 1114802 2024-008
    Significant Deficiency
  • 1114803 2024-008
    Significant Deficiency
  • 1114804 2024-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $9.49M
84.063 Federal Pell Grant Program $2.63M
84.038 Federal Perkins Loan Program_federal Capital Contributions $1.16M
93.925 Scholarships for Health Professions Students From Disadvantaged Backgrounds $503,853
93.732 Mental and Behavioral Health Education and Training Grants $275,365
84.033 Federal Work-Study Program $201,657
84.007 Federal Supplemental Educational Opportunity Grants $178,346
84.116 Fund for the Improvement of Postsecondary Education $166,566
47.050 Geosciences $69,412
12.420 Military Medical Research and Development $46,207
84.019 Overseas Programs - Faculty Research Abroad $46,184
47.076 Stem Education (formerly Education and Human Resources) $11,358
11.417 Sea Grant Support $5,783
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $3,772
12.905 Cybersecurity Core Curriculum $540