FAC Explorer

Finding 548002 (2024-002)

Material Weakness
Requirement
AB
Questioned Costs
$1
Year
2024
Accepted
2025-03-31
Audit: 351904
Organization: Quincy Asian Resources, Inc. (MA)
Auditor: Gray Gray & Gray LLP

AI Summary

  • Core Issue: Payroll costs of $75,000 were based on estimates rather than actual time sheets.
  • Impacted Requirements: Time sheets were inaccurately filled out, leading to unverified hours charged to the grant.
  • Recommended Follow-Up: Implement policies to ensure only actual hours worked are billed to the grant.

Finding Text

Condition and Criteria: A monthly journal entry was recorded for nine months that allocated additional payroll to the grant which was based on management’s estimates and not on approved time sheets. Management identified the time sheets were not being accurately filled out and, on a monthly basis estimated the additional time they believed was spent on the grant but not recorded in the approved time sheets. Questioned Cost: $75,000. Cause: The employees improperly completed their time sheets and those responsible for reviewing and approving the time sheets did not detect and correct the improperly recorded time. Effect: It cannot be verified that the employees worked these additional hours that were billed to the grant. Auditor’s Recommendation: The Organization should develop and implement policies and procedures to ensure that only actual hours spent working on the grant are charged to the grant as direct labor.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action: While Quincy Asian Resources, Inc. concurs with the ultimate outcome identified in the finding regarding timesheet the identified documentation issues stemmed from procedural gaps in our timekeeping processes rather than any misuse of funds. Our internal review confirms employees dedicated appropriate time to grant activities, but our timecard reporting system did not adequately capture this effort due to: 1. Staff’s incomplete understanding of federal documentation requirements 2. Need for enhanced timesheet review protocols 3. Limitations of our current time tracking system To strengthen our processes, we are: 1. Implementing a new time tracking system better aligned with federal requirements 2. Providing comprehensive training to all employees on proper time reporting 3. Training supervisors on thorough timesheet review procedures 4. Enhancing our internal controls around time documentation These improvements will ensure our documentation fully supports the valuable grant-funded services we provide to the community

Categories

Questioned Costs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.988 Cooperative Agreements for Diabetes Control Programs $826,496
97.010 Citizenship Education and Training $116,056