Finding Text
Condition: During the audit, we noted that there was no documentation of approval of the percentage of
payroll costs that was being allocated to the federal grant.
Cause: The Organization received a new grant in 2021 and was therefore required to have physical sign
off for the approval of timecards that allocated time to the grant.
Criteria: The Organization have a documented process of review and approval of timecards to ensure
that the payroll charged to the federal grant is accurate.
Effect: Due to the condition noted above, the Organization charged payroll costs to the grant at or below
the approved budget. While cost principles allow for budgeted payroll costs to be charged to grants at
interim reporting periods, actual payroll costs incurred must be charged to close out a grant. The
Organization does not have sufficient controls in place to document the review and approval of actual
payroll costs charged to the program.
Recommendation: The Organization should implement a process to document the review and approval
of actual payroll costs charged to its federal grants.