Finding 564783 (2024-001)

Subject: Management Response to FY 2024 Single Audit finding 2024-001 Based on changes in The Parenting Center personnel assigned to the Federal Grant programs in early 2024, a decision was made for staff to be cross trained on similar grant programs. In this situation, TPC lost a few key personnel, and restructuring was done by cross-training so that there should always be a trained employee that could step from one Youth program to the other and also grant directors that were familiar with each of the Federal Grant programs. In doing this, personnel costs for some individuals have to be spread across multiple grants in a given pay period. That spread is tracked and calculated based on time sheets prepared by the employee and approved by their supervisor. At the beginning of the 2024 fiscal period, if a grant employee used PTO, their PTO continued to be charged to the grant they had been hired under and not spread according to time sheets, since the budgets had been prepared in October 2023 with that job basis. However, at the beginning of the new grant year in October 2024, it appeared more equitable to spread PTO for a grant employee based on the FTE they were budgeted in each grant. The PTO is not earned in one pay period, so I do not believe using the time sheet that could fluctuate between grants each pay period matches how they earn the PTO as well as using the FTE percentage does. The alloca􀆟on of time was not smooth throughout the year, but the change was made as practice made it clear that the second method was a more accurate depiction of what was happening. We are commitied to the spread as it was being done at the end of FY 2024. Starting FY 2025, our internal control procedures specify allocations of hours worked being based on the employee time sheets and allocations of PTO being based on the FTE assignments of the employee.