Finding Text
U.S. Department of Housing and Urban Development 14.181 ? Supportive Housing for Persons with Disabilities Section 811 Capital Advance 2022-002 Payroll Expense Condition: Payroll expense for the Resident Manager and Maintenance, was based on estimated percentage. There was no timesheets or time study prepared, during the 2022 calendar year. Criteria: The allowability of costs requires that the expense must be adequately documented. Effect: Payroll expense for the Resident Manager and Maintenance, was not adequately documented, during the 2022 calendar year, resulting in potential questioned cost of $12,842.56. Cause: Payroll expense was based on an estimate of labor performed between the two Projects, who employed the Resident Manager and the Maintenance staff. Context: Payroll expense during the calendar year for the Resident Manager and the Maintenance staff. Population Size Number: 3 employees for 24 pay periods. Dollar Amount: $ 12,842.56. Sample Number: 3 employees for 3 pay periods. Dollar Amount: $ 1,628.53. Items Not in Compliance Number: 3 employees for 24 pay periods. Dollar Amount: $ 1,628.53. Questioned Costs There is potential questioned cost of $12,842.56. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Terra Quest, Inc., prepare timesheets or perform a time study, in order to properly report payroll expense for the Resident Manager and the Maintenance staff. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: Moving to new system.