Finding 579586 (2022-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-12-04
Audit: 5138
Organization: Aids Outreach Center (TX)

AI Summary

  • Core Issue: Personnel expenses charged to federal awards lack proper support, with 14 out of 40 sampled costs not accurately calculated based on timesheets.
  • Impacted Requirements: Compliance with Section 200.430 of the Uniform Guidance is compromised, as 7 timesheets were not approved or signed.
  • Recommended Follow-Up: Conduct a detailed review of RFRs to ensure all personnel expenses are adequately supported by approved timesheets.

Finding Text

Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated. Condition: During review of personnel expenses, we noted that 14 out of 40 sampled personnel costs did not recalculate based on the employee’s pay rate and hours spent on the grant per timesheet. Further, we noted that 7 of 40 employee timesheets were not approved by supervisor and/or timesheet not signed by employee. Cause: The Organization experienced turnover in accounting management at the end of 2020 and throughout 2021. The interim management did not ensure personnel costs charged to grant were supported by timesheets. Further, the interim management did not and would not have had time to implement the corrective action plan as the prior audit was completed in September 2022. Effect: The Organization’s reporting of grant time and effort is not fully documented, in accordance with the Uniform Guidance requirements. Questioned costs: $2,438.05. Recommendation: RFRs should be reviewed in detail to ensure personnel expenses are supported by timesheets.

Categories

Questioned Costs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 3143 2022-001
    Significant Deficiency Repeat
  • 3144 2022-002
    Material Weakness Repeat
  • 3145 2022-003
    Material Weakness Repeat
  • 3146 2022-003
    Material Weakness Repeat
  • 3147 2022-002
    Material Weakness Repeat
  • 3148 2022-001
    Significant Deficiency Repeat
  • 579585 2022-001
    Significant Deficiency Repeat
  • 579587 2022-003
    Material Weakness Repeat
  • 579588 2022-003
    Material Weakness Repeat
  • 579589 2022-002
    Material Weakness Repeat
  • 579590 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.914 Hiv Emergency Relief Project Grants $1.16M
93.917 Hiv Care Formula Grants $626,278
12.241 Housing Opportunities for Persons with Aids $250,590
93.940 Hiv Prevention Activities_health Department Based $155,576
97.024 Emergency Food and Shelter National Board Program $76,688
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $41,058
21.027 American Rescue Plan Act-Arpa $10,425
14.267 Rapid Housing Assistance $10,166