Description of Finding: Payroll charges for grants were based on a percentage of time reported
by employees. The percentage was based on management’s decision and set when budgeting and
not based on actual hours worked. There was not sufficient documentation to provide the basis
for an appropriate allocation of payroll charges to the federal program.
Planned Corrective Action:
To ensure accurate payroll allocation to federal programs, YWCA New Hampshire will
implement the following:
1. Time and Effort Reporting: Implement a time and effort reporting system by August
31, 2025, requiring employees to track actual hours worked on grant-funded activities
weekly.
2. Policy Update: Revise the Payroll Allocation Policy to mandate that payroll charges to
grants be based on actual hours worked, supported by time and effort reports.
3. Training: Train all grant-funded employees and supervisors on the time and effort
reporting system by September 15, 2025.
4. Certification Process: Require employees and supervisors to certify time and effort
reports monthly, with certifications retained for audit purposes.
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5. Monitoring: The Finance Manager will review time and effort reports quarterly to ensure
accurate allocation, with findings reported to the Executive Director.
Responsible Party: Finance Manager, overseen by Caroline Catlender, Executive Director
Anticipated Completion Date: September 30, 2025