Finding Text
Type of Finding: Material Weakness in Internal Control over Compliance of Major Programs and Noncompliance
within the Major Programs
•Criteria: Caritas Family Solutions is responsible for maintaining and capturing supporting
documentation such as timesheets to support the hours worked and paid to participants under the grant,
ensuring compliance with activities allowed and unallowed and allowable costs.
•Condition: During the audit, it was discovered that for four individuals, timesheets supporting the hours
paid under the grant were unavailable. This deficiency in record-keeping and documentation hindered
the verification of hours worked and compliance with allowable costs and activities allowed and
unallowed.
Cause: The absence of timesheets may be due to inadequate record-keeping practices, lack of a clear
documentation procedure, or oversight in maintaining required records.
•Effect: Failing to provide timesheets for these individuals raises concerns about the accuracy of hours
reported and the potential for non-compliance with allowable costs and activities allowed and
unallowed. This jeopardizes the integrity of grant management and could result in the misallocation or
misuse of grant funds.
•Recommendation: The Organization must establish and enforce clear procedures for the maintenance
and retention of timesheets, ensuring that they are consistently documented and readily available for
verification.
•Responsible Party: Gary Huelsmann, Chief Executive Officer
•Management Response and Corrective Action Plan: This deficiency was also discovered during our
internal investigation, and Caritas Family Solutions has implemented a new process to ensure that
internal controls are in place.
After the PM has verified that timesheets are accurate and complete, they will be scanned and sent
to Payroll for processing.
Payroll will maintain a copy of the email providing the documents and will comply with federal
guidelines of storing records for a period after the close of the grant.
The PM will file a hard copy of the timesheets in the SCSEP office.
The files will be kept in the office until completion of quarterly reviews for the fiscal year by the
QI department, and then they will be transferred to the agency’s long-term storage facility for files.
•Anticipated Completion Date: Implemented in September 2023, but the process will be ongoing while
the program is funded.