Finding 555350 (2024-002)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-04-18

AI Summary

  • Core Issue: The Organization improperly charged personnel expenses to federal awards without proper documentation of time worked.
  • Impacted Requirements: Personnel expenses must be supported by records reflecting actual time and effort spent on the program.
  • Recommended Follow-Up: Implement a time and effort tracking system and provide training to ensure compliance with federal requirements.

Finding Text

Finding # 2024-002 Type: Material weakness Type: Material noncompliance over allowable costs A.L. Number: 14.218 and 21.027 Requirement: Personnel expenses charged to federal awards must be supported by records that reflect the time worked charged to the award. Condition: The Organization charged personnel expenses based on approved budgeted amounts in the award agreement. Context: Certain personnel time was charged to the award without documentation to support time and effort spent on the program (12 of 64 tested). Cause: Organization personnel were not aware of the time and effort tracking requirements for federal awards. Effect: Personnel costs could be charged to program for 1) work that was not performed on the program and 2) expenses covered by another funding source. Questioned Costs: Unknown Recommendation: We recommend the Organization implement a time and effort system to track employee time by program or funding source. This is typically done in a timesheet format that tracks all time worked by an employee, including programmatic and administrative time. Management’s Response: Management will carry out additional training with employees on tracking time as well as develop an improved timesheet process. Management also will implement a new payroll system to ensure integration with the accounting system.

Corrective Action Plan

Finding # 2024-002 Type: Material weakness Type: Material noncompliance over allowable costs A.L. 14.218 U.S. Department of Housing and Urban Development A.L. 21.027 U.S. Department of Treasury Material Weakness/Material Noncompliance Personnel expenses charged to federal awards must be supported records that reflect the time worked charged to the award. The Organization charged personnel expenses based on approved budgeted amounts in the award agreement for 12 of 64 items tested. Corrective Action: We will implement additional training with employees on tracking time as well as develop an improved timesheet process. We are also in the process of implementing a new payroll system to ensure integration with the accounting system. Anticipated Completion Date July 1, 2025

Categories

Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 555351 2024-002
    Material Weakness
  • 555352 2024-002
    Material Weakness
  • 555353 2024-002
    Material Weakness
  • 555354 2024-002
    Material Weakness
  • 555355 2024-002
    Material Weakness
  • 555356 2024-003
    Material Weakness
  • 555357 2024-003
    Material Weakness
  • 555358 2024-003
    Material Weakness
  • 555359 2024-003
    Material Weakness
  • 555360 2024-003
    Material Weakness
  • 555361 2024-003
    Material Weakness
  • 555362 2024-004
    Significant Deficiency
  • 555363 2024-004
    Significant Deficiency
  • 555364 2024-004
    Significant Deficiency
  • 555365 2024-004
    Significant Deficiency
  • 555366 2024-004
    Significant Deficiency
  • 555367 2024-004
    Significant Deficiency
  • 555368 2024-002
    Material Weakness
  • 555369 2024-002
    Material Weakness
  • 555370 2024-002
    Material Weakness
  • 555371 2024-003
    Material Weakness
  • 555372 2024-003
    Material Weakness
  • 555373 2024-003
    Material Weakness
  • 1131792 2024-002
    Material Weakness
  • 1131793 2024-002
    Material Weakness
  • 1131794 2024-002
    Material Weakness
  • 1131795 2024-002
    Material Weakness
  • 1131796 2024-002
    Material Weakness
  • 1131797 2024-002
    Material Weakness
  • 1131798 2024-003
    Material Weakness
  • 1131799 2024-003
    Material Weakness
  • 1131800 2024-003
    Material Weakness
  • 1131801 2024-003
    Material Weakness
  • 1131802 2024-003
    Material Weakness
  • 1131803 2024-003
    Material Weakness
  • 1131804 2024-004
    Significant Deficiency
  • 1131805 2024-004
    Significant Deficiency
  • 1131806 2024-004
    Significant Deficiency
  • 1131807 2024-004
    Significant Deficiency
  • 1131808 2024-004
    Significant Deficiency
  • 1131809 2024-004
    Significant Deficiency
  • 1131810 2024-002
    Material Weakness
  • 1131811 2024-002
    Material Weakness
  • 1131812 2024-002
    Material Weakness
  • 1131813 2024-003
    Material Weakness
  • 1131814 2024-003
    Material Weakness
  • 1131815 2024-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.020 Community Development Financial Institutions Program $391,600
59.046 Microloan Program $310,383
21.027 Coronavirus State and Local Fiscal Recovery Funds $156,276
59.050 Prime Technical Assistance $61,276
14.218 Community Development Block Grants/entitlement Grants $1,781