Finding Text
Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Low-Income Home Energy Assistance CFDA number: 93.568 Award number: F19-53101-410, F19-53101-428, F21-32606-069, F21-32607-069, F21-5310C-410, F21-63260A-069, F22-32606-069 Award period: 10/1/2020 ? 9/30/2024 Funding agency: U.S. Department of Health and Human Services Title: Community Services Block Grant CFDA number: 93.569 Award number: F20-3210C-009, F21-32101-009, F22-32101-009 Award period: 1/20/2020 ? 9/30/2023 Criteria: The CAC must establish internal control procedures over compliance with provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), that require, among other things, that direct charges to federal awards be for allowable costs. To be an allowable cost, charges must be supported by appropriate documentation and be properly approved. The specific requirements for allowable activities are unique to each Federal Program and are found in the laws, regulations, and the provisions of each contract or grant agreement pertaining to the federal program. Condition: Results of Tests of Internal Controls Over Compliance and Compliance ? 93.568 ? We selected a sample of 25 transactions to test controls over compliance and compliance of payroll disbursement costs charged to the major program. We identified 3 instances of the 25 payroll transactions where the employee's timesheet was reviewed by the supervisor, but the contract charged in the general ledger did not agree to the actual hour allocation noted on the employee?s timesheet and personnel action notice. The errors noted resulted in over charges to the program of $775. The total sample population of the 25 payroll items tested was $28,187. 93.569 ? We selected a sample of 25 transactions to test controls over compliance and compliance of payroll disbursement costs charged to the major program. We identified 1 instance of the 25 payroll transactions where the employee's timesheet was reviewed by the supervisor, but the contract charged in the general ledger did not agree to the actual hour allocation noted on the employee?s timesheet and personnel action notice. The errors noted resulted in an under charge to the program of $165. The total sample population of the 25 payroll items tested was $28,696. Cause: The primary factor that contributed to the deficiencies was the lack of sufficient controls implemented to appropriately review and monitor payroll activity and ensure amounts were properly recorded in the general ledger. Effect: Payroll transactions were being processed incorrectly. Context: Management did not implement effective internal controls over payroll disbursements. Questioned costs: 93.568 ? Known questioned costs were $775 of over charges. 93.569 ? Known questioned costs were $165 of under charges. Repeat Finding: This is not a repeat finding. Recommendation: In order to ensure payroll transactions are properly reviewed, approved, and supporting documentation maintained, we recommend the CAC ensure controls over payroll procedures are operating effectively ? this includes implementing a review process over employee time allocation from timesheets to the general ledger. Views of Responsible Officials: Management agrees with the finding and has prepared corrective action as detailed in its Corrective Action Plan.