Finding Text
Finding 2024-003: Allowable costs – Significant deficiency over internal controls over compliance
and compliance finding.
Crime Victim Assistance ALN 16.575
Criteria: The Uniform Guidance requires that costs be adequately documented. The
Organization’s internal control procedures over compliance specify that all employees’
timesheets and hours agree to the payroll register and to the amount allocated to grant activities.
Condition: During allowable cost testing for federal grants, for 3 of the 25 payroll transactions
tested, the time and effort charged to the grant did not agree to the employee's timesheet. The
amount of time that was charged to the grant was greater than what was approved to be charged
to the grant per the employee’s timesheet hours and grant budget allocations, and additional
fringe benefits were charged that were not consistent with the other charges to the grant.
Cause: For one sample, this was due to additional funds being available under the grant so, the
amount charged was increased to use up remaining funds. For another sample, the employee
was paid additional hours and fringe benefits that were not documented on the employee’s
timesheet, and due to oversight, the timesheet was not updated to reflect these additional hours.
For the third sample, additional fringe benefits were charged for this employee that were not
charged for the other employees.
Effect: Employee payroll was not accurately allocated to the grant based on actual time and
effort.
Questioned costs: None.
Recommendation: Hours worked towards the grant on the approved timesheet should be used
to determine how much of the employee’s time is charged to the grant. If changes are made,
they need to be documented and supported for how the change reflects the employee’s time
and effort towards the grant program. Requests for reimbursement should reviewed in detail to
ensure all payroll costs are properly supported by time sheets. In addition, any fringe benefits
charged to the grant should be documented and consistently charged.
Management’s response: See corrective action plan.