Finding Text
Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries related expenditures and benefits that are allocated based on time were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The allocations are made based on the time distributions updated each payroll period to reflect the time recorded on the reviewed and approved timesheets. Cause: The allocations are recorded based on distribution table data updated each time a new payroll is processed. As a result, if the salaries and related expenditures cost allocations are not recorded on a timely basis the appropriate distribution table data will not reflect the appropriate payroll period data and the error will not be detected by the current internal control structure. Effect: Due to the untimely recording of salaries and related expenditures based on time, the expenditures allocated for the various programs are based on the incorrect supporting time data. Recommendation: BFCAC needs to implement internal control procedures to ensure that allocated salaries and related expenditures are recorded on a timely basis and reflect the appropriate supporting distribution allocation time data. Questioned Costs: Undeterminable