Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Child Care and Development Block Grant
Assistance Listing Number: 93.575
Pass-Through Agency: Washington State Department of Children, Youth and Families
Pass-Through Number(s): 12898 – 2023; 337839 – 2024; 206438 – 2023; 213938 – 2024; 87649 -
2023
Award Period: April 3, 2023 – April 2, 2024; January 10, 2024 – January 9, 2025; April 3, 2023 – April
2, 2024; January 10, 2024 – January 9, 2025; April 3, 2023 – April 2, 2024
Type of Finding:
Material Weakness in Internal Control Over Compliance – Allowable Costs
Other Matters
Criteria or specific requirement: Proper internal controls over time and effort are to be in place in
order to ensure payroll costs are properly charged to grants.
Condition: Time sheets did not indicate the project/grant the employee worked on for the pay period to
support allocation to the grant. Payroll costs charged to the grant during the award period were charged
at 50% and were not allocated based on the employee’s time spent working in the programs. The
allocation of 50% was not supported by the Club’s records.
Questioned costs: None.
Context: For the payroll transactions selected for testing, all 27 payroll transactions were not supported
by time and effort records which agreed to the 50% allocation rate.
Cause: All activities conducted by the employee’s being charged to the grant are considered allowable
costs and allowable activities to the grant, and as such, allocation was not tracked and documented
during the audit period.Effect: Payroll costs were not charged to the program based on time and effort.
Repeat finding: Not a repeat finding.
Recommendation: We recommend time spent on the Child Care Development Block Grant be coded
to a unique project code in order to ensure time and effort is properly identified and tracked for the
program. We also recommend the Club retain support for the allocation rates used and approval of the
allocation.
Views of responsible officials: There is no disagreement with the audit finding.