Finding Text
Criteria: Internal controls should be in place that provide reasonable assurance that cost allocations of staff time accurately represent the correct allocation of employee-related costs based on the time spent by applicable employees. Condition : Cost allocations for salaries, including federal award programs, are not consistently supported by employee timesheets or other similar documentation. Effect : The amounts allocated in the general ledger did not agree to the amounts allocated by the timecard documentation resulting in improper allocation of expenses to grants. Cause : There are no procedures in place for adjust the time allocation and aligning them with the time sheet on a regular basis and when there are a change in employees. Recommendation : We recommend that the Organization implement a control process to review time cards against the time allocation adjustment entry on a regular basis. Views of Responsible Officials and Planned Corrective Actions : The Organization recognizes this finding and agrees with the recommendation. Going forward the Organization will implement a control to reconcile timecard allocations with general ledger allocations.