Finding Text
Condition: During our review of internal controls over allowable activities and allowable costs/cost principles compliance requirement for the major federal program above, we noted several instances which personnel activity reports used to generate the request for reimbursement were not signed as approved by the employees? direct supervisor. Criteria: Effective internal controls should be established to prevent or detect noncompliance with required compliance requirements over federal awards, including payroll expenditures charged to federal awards. Cause: Procedures are not being consistently applied to review personnel activity reports before preparation of monthly request for reimbursement and submission to grantor. Effect: As a result of the deficiency noted, internal controls over personnel charges to federal programs were deemed to be ineffective to prevent or detect noncompliance with compliance requirements over federal awards. Recommendation: Management should review procedures over approval of personnel activity reports and ensure procedures are being consistently followed including review of all reports by employees? direct supervisor.