Finding Text
Finding F2024-004 – Missing approval of timesheet
Assistance Listing Number: 93.575
Assistance Listing Program Title: California State Preschool Program (CSPP)
Federal Agency: U.S. Department of Labor
Pass Through Entity: California Department of Education
Federal Award Number: CSPP-3192-0
Federal Award Year: July 1, 2023 to June 30, 2024
Compliance Requirement: A. Activities allowed / unallowed
B. Allowable costs/cost principles
Criteria
The 2 CFR section 200.303 requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provide reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.
Condition
In performing allowable costs testwork, we noted that 1 out of 25 timesheets selected for testwork was missing evidence of the supervisor’s approval.
Cause
The timecard missing the supervisor’s approval resulted from a payroll system restriction that prevents supervisors from viewing employee information, including timecards, for employees who are on leave. This is in place to prevent a supervisor from contacting an employee on approved leave and to assure El Proyecto remains compliant with applicable employment laws and regulations while an employee is on approved leave. This system restriction resulted in the supervisor being unable to approve the employee’s timecard.
Effect
Lack of review and approval of timesheets could lead to unallowed costs being charged to the program.
Questioned Costs
None.
Recommendation
We recommend that El Proyecto implement additional controls to ensure the timesheet related to the actual hours worked for individuals who go on medical leave during a pay period are reviewed and approved. This will help ensure that payroll charges are accurate and that only allowable costs are charged to the grant.
Views of Responsible Officials and Planned Corrective Actions
El Proyecto will update the standard operating procedure for approving timecards while an employee is on leave while remaining compliant with applicable employment laws and regulations.
Person Responsible: Ricardo Ornelas
Position of Responsible Party: Chief Financial Officer
Completion Date: August 31, 2025