Finding Text
Finding 2024-005 Allowable Costs–Payroll Costs (Significant Deficiency and Noncompliance)
(Repeat Finding)
Information on the Federal Program: U.S. Department of Health and Human Services,
Assistance Listing #93.243 Substance Abuse and Mental Health Services Projects of Regional and
National Significance.
Criteria: 2 CFR section 200.302 establishes the requirements for sufficient financial management
over grant funding to ensure records adequately identify the source and application of funds for
federally funded activities. These records must contain information pertaining to Federal awards,
authorizations, financial obligations, unobligated balances, assets, expenditures, income and
interest and be supported by source documentation.
Condition: We tested 32 payroll disbursements across five pay periods. Of those 32, 5 exceptions
were noted. One exception was that the amount of time and corresponding amounts allocated to
the grant did not agree to the percentage documented on the employee’s timesheet. For the other
4 exceptions, the supporting time sheets could not be provided for a pay period tested.
Cause: Employee timesheets are turned in after payroll is processed and allocations made, the
timesheet in this exception did not agree to the amount allocated. Four supporting time sheets for a
January payroll processed could not be located.
Effect: The Council did not retain proper documentation to support payroll costs charged to the
grant.
Questioned Costs: $729
Recommendation: We recommend the Council strengthen procedures surrounding payroll so that
the source documentation agrees to and is retained to support the amounts being allocated to the
grant based on actual employee time.
Views of Responsible Officials: See Management’s View and Corrective Action Plan at the end of
the report.