Finding Text
Finding 2024-006: Timekeeping and Payroll Allocations (Significant Deficiency)
Information on the Federal Program: 93.368
Criteria: According to 2 CFR Section 200.430(i) charges to Federal awards for salaries and wages
must be based on records that accurately reflect the work performed. These records must:
i. Be supported by a system of internal control which provides reasonable assurance that the
charges are accurate, allowable, and properly allocated;
ii. Be incorporated into the official records of the non-Federal entity;
iii. Reasonably reflect the total activity for which the employee is compensated by the non-Federal
entity, not exceeding 100% of compensated activities;
iv. Encompass federally-assisted and all other activities compensated by the non-Federal entity on
an integrated basis, but may include the use of subsidiary records as defined in the non-Federal
entity’s written policy;
v. Comply with the established accounting policies and practices of the non-Federal entity;
vii. Support the distribution of the employee’s salary or wages among specific activities or cost
objectives if the employee works on more than one Federal award; a Federal award and non-
Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities
which are allocated using different allocation bases; or an unallowable activity and a direct or
indirect cost activity.
viii. Budget estimates (i.e., estimates determined before the services are performed) alone do not
qualify as support for charges to Federal awards.”
Condition: We noted that while the Foundation does keep timesheets, we noted several instances in
which the timesheets lacked evidence of supervisory approval. In addition, we noted several
instances in which the timesheet was not dated when approved.
Cause: The Foundation does not document their review and approval process consistently over
timesheets.
Effect or Potential Effect: Without the proper, documented, approval processes in place over
timesheets, there exists the potential for allocation errors.
Questioned Costs: Undetermined, as the allocations are based on employee timesheets, but it is
undeterminable if those timesheets were truly accurate due to the lack of consistent, documented
approval over the timesheets by a supervisor.
Context: Our audit procedures consisted of testwork performed over a sample of timesheets
submitted during the year under audit. We consider our sample to be representative of the
population. The issue appears to be systematic in nature.
Identification as a Repeat Finding: Not a repeat finding.
Recommendation: We recommend that the Foundation ensure that all approvals over timesheets
are clearly documented and dated.