Finding Text
Finding # 2024-001
Type: Material weakness
Type: Material noncompliance
Assistance Listing Number: Department of Health and Human Services 93.658
Requirement: Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Such records must meet the standards as specified in 2 CFR 200 Subpart E Cost Principles §200.430.
Condition: Payroll allocations were done based on management’s estimate through departmental meetings and work assignments rather than actual time records maintained by staff.
Context: Payroll allocation during the months of January through April 2024 were based on estimates. Total payroll charged during this time was approximately $218,000 of the $815,000 total federal expenditures for the year.
Cause: Management became aware of the need for a time tracking system after the activities funded by the Federal awards began.
Effect: Payroll costs charged to the grant may not be accurate.
Questioned Costs: Approximately $218,000
Recommendation: We recommend that management continue to reinforce utilization of the time tracking system that was implemented in 2024. In addition, management should ensure that the timecards submitted by staff are reviewed and approved timely.
Management’s Response:
Management agrees and as noted, a new time tracking system was implemented in May 2024 and no exceptions were identified after implementation.