Finding 576071 (2024-003)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-09-10
Audit: 365974
Organization: Along the Way (PA)
Auditor: Cla

AI Summary

  • Answer: There is a material weakness in internal controls regarding compliance with federal salary and wage requirements.
  • Trend: This issue indicates a lack of proper documentation and approval for personnel costs related to federal awards.
  • List: Follow up by implementing stronger controls to ensure accurate time and effort records for salary charges.

Finding Text

Material Weakness in Internal Control over Compliance and Other Matters Criteria: 2 CFR Part 200 Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition: The Organization did not have adequate controls designed to ensure the personnel cost charged to the program are documented and approved based on the time and effort spent working on the program.

Corrective Action Plan

We recommend the Organization implement controls that require employees to document their time and effort spent on various activities. Time and effort certifications should be regularly reviewed and approved by appropriate personnel to ensure accuracy and completeness of personnel cost documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: During FY 2025 the Organization implemented Clockify, a third-party time reporting system, to track employee hours and to certify personnel costs in accordance with Uniform Guidance. Additionally, a third-party Human Resources consultant was engaged to oversee timesheet management and approval. Prior to this, management utilized a project management platform which offered general oversight for time reporting; however we recognize that it did not meet the federal time certification requirements. Name(s) of the contact person(s) responsible for corrective action: Kristina Valdez, Chief Executive Officer Planned completion date for corrective action plan: Planned completion date is June 30, 2025.

Categories

Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 576070 2024-002
    Material Weakness
  • 576072 2024-004
    Significant Deficiency
  • 576073 2024-005
    Material Weakness
  • 576074 2024-006
    Material Weakness
  • 1152512 2024-002
    Material Weakness
  • 1152513 2024-003
    Material Weakness
  • 1152514 2024-004
    Significant Deficiency
  • 1152515 2024-005
    Material Weakness
  • 1152516 2024-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.46M