Finding 548004 (2024-004)

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

AI Summary

  • Core Issue: Monthly journal entries for payroll were based on estimates rather than actual approved time sheets.
  • Impacted Requirements: Accurate timekeeping and documentation for federal grants were not being followed, leading to potential compliance risks.
  • Recommended Follow-Up: Provide training for employees and approvers on proper time sheet completion and the significance of accurate reporting.

Finding Text

Material Weakness: As discussed at Finding 2024-02, 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 determined that the time sheets were not being properly completed and estimated, on a monthly basis, the additional amount time they believed was incurred on the grant and not captured in the approved time sheets. The Organization should ensure that all employees working on federal grants and those charged with the responsibility of approving the time sheets, have the appropriate training to understand how to accurately record time and the importance of doing so.

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, we want to emphasize our review indicates all transactions were handled with appropriate intent. The identified adjustments were primarily due to timing of personnel transitions on our accounting department. To further strengthen our financial reporting processes, we have subsequently hired a new controller with extensive nonprofit accounting experience. This addition to our team 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 Material Weakness

Other Findings in this Audit

  • 548001 2024-001
    Significant Deficiency
  • 548002 2024-002
    Material Weakness
  • 548003 2024-003
    -
  • 548005 2024-005
    -
  • 548006 2024-006
    Significant Deficiency
  • 548007 2024-007
    Significant Deficiency
  • 548008 2024-008
    Significant Deficiency
  • 548009 2024-009
    Significant Deficiency
  • 1124443 2024-001
    Significant Deficiency
  • 1124444 2024-002
    Material Weakness
  • 1124445 2024-003
    -
  • 1124446 2024-004
    -
  • 1124447 2024-005
    -
  • 1124448 2024-006
    Significant Deficiency
  • 1124449 2024-007
    Significant Deficiency
  • 1124450 2024-008
    Significant Deficiency
  • 1124451 2024-009
    Significant Deficiency

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