Finding Text
Major program: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing No. 21.027
Grant period: 10/01/22 – 09/30/24
Finding Type: Noncompliance with the following direct and material compliance requirements and material
weakness in internal control over compliance:
Activities Allowed and Unallowed
Allowable Costs and Cost Principles.
Criteria: Uniform Guidance establishes standards for time reporting and labor charges to federal awards. Grantees
must comply, requiring all employees paid with federal funds to maintain time and effort reports.
Condition and Context: The Organization did not maintain adequate time and effort reports for staff salaries and
fringe benefits for all employees who spent less than 100% of their time working on this major program.
Cause: Due to staff turnover, management did not maintain proper records for staff time and effort charged to the
major program.
Effect or Potential Effect: As a result, some of the salaries and fringe benefits charged to the major program may
not have been charged properly to the major program.
Questioned Costs: Salaries and fringe benefits totaling $247,221, which is the total amount of salaried staff time
and effort charged to the major program based on the budget rather than actual hours worked.
Recommendation: We recommend that management implement procedures to track and properly record staff time
charged to federal grants.
Management’s Response: Management is in the process of creating new controls that will allow them to properly
track and properly record staff time charged to federal grants. Planned Implementation Date of Corrective Action: January 2025
Person Responsible for Corrective Action: Amy Chen, AVP, Finance