Finding Text
Finding 2022-003: Time and Effort Reports Agency and Award: State Administrative Matching Grants for the Supplemental Nutrition Assistance Program Assistance Listing Number: 10.561. Condition: The time and effort reports were not available when performing a test of salaries and related expenditures charged to the federal award program during the audit. Criteria: Time and effort reporting is required under the Federal Office of Management and Budget?s Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments Attachment B, Selected Items of Cost, Item 9, Compensation for Personnel Services. In other words, federally sponsored programs require that employees track and independently confirm their time and attendance as a means of supporting the costs that were applied to the federal grant program. Cause: As a result of change of staff and no clear instruction from the State of Maryland, The Light House did not track the time allocation and instead used the fixed percentage as per the grant. Context and Effect: By not completing the time and effort reports, The Light House did not have the required documentation to further support the amount of its employees? time spent on the federal grant award that was otherwise recorded on the approved timesheets and tracked in the accounting system. Questioned Costs: None Repeat Finding: No Recommendations: We recommend that The Light House incorporate the completion of the time and effort report as part of its standard operating procedures. The time and effort reports should be completed at least monthly, and certified by employees and management attesting to their accuracy. In addition, the time and effort reports should be reconciled between timesheets, payroll reports, and the federal grant budgets.