Finding Text
Finding 2023-001: Timesheets
Federal Program: CFDA 15.875
Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
paragraph 430 “Compensation – personal services” requires that charges to Federal awards for
salaries and wages must be based on records that accurately reflect the work performed, and that
these records must be supported by a system of internal control which provides reasonable assurance
that the charges are accurate, allowable, and properly allocated. Additionally, these records must
comply with established accounting policies and practices of the non-Federal entity.
Condition: During our audit, we noted that timesheets did not track time charged to Federal programs
and accordingly, an after the fact allocation adjustment needed to be made to appropriately reflect the
level of effort on the Federal program.
Cause: The Foundation did not effectively communicate the required practices on how to track time
on timesheets throughout the year.
Effect or Potential Effect: The Foundation could inadvertently fail to maintain records to support cost
allocations.
Questioned Costs: Indeterminable
Context: The Foundation did not keep timesheet records to support the amounts charged to the
general ledger, during the year. Our audit work in this area consisted of a random sample selection of
payroll periods and employees. We consider our sample to be representative of the population, and
thus, is a statistically valid sample.
Identification as a Repeat Finding: Not applicable
Recommendation: We recommend that management enforce its current payroll policies, ensure
each employee completes a timesheet that pertains to each payroll period and of which documents
the allocation of time worked on departments, projects and affiliates (per the policy). Furthermore, the
finance department should prepare and maintain a reconciliation between the program allocations (as
documented in the approved timesheets) and the general ledger in order to ensure a full and accurate
audit trail of payroll expenditures.