Finding Text
DEPARTMENT OF HEALTH AND HUMAN SERVICES Program Information Assistance Listing # 93.137 Community Programs to Improve Minority Health Grant Program 2022-001 Documentation of Personnel Expenses (Timesheets) Material Weakness Criteria: Generally accepted accounting principles in the United States (GAAP) requires entities to establish and maintain effective internal controls over financial reporting to ensure accurate financial reports. A good system of internal controls requires contemporaneous timesheets be maintained for all employees and the timesheets should be signed by both the employee and the supervisor. 2 CFR Section 200.430 also requires charges to federal awards for salaries and wages to be based on records that accurately reflect the work performed. Condition: A sample of ten employees was selected from four payrolls throughout the year under audit. 27 employees did not have timesheets. Cause: Management believed that full-time salaried employees did not require a timesheet. Effect: Contemporaneous documentation was not obtained from employees. Subsequent, employees signed certifications for the allocation of their time. Auditor?s Recommendation: We recommend that management require all employees to complete a timesheet which includes all required UG elements. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and has already taken corrective action. On January 1, 2023 an electronic time reporting function was put into effect through ADP (?Automatic Data Processing?), the company?s payroll processing system. This improvement allows employees to enter their time and select a cost center (?department code?) at the time of entry. It then routes the timesheet for approval by the supervisor before reaching the accounting department for payment initiation, resulting in an automated review and approval.