Finding Text
Finding 2021-005: Timesheets
Information on Federal Program: Assistance Listing Numbers 93.914 and 93.917
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: Payroll is allocated based on budget. We noted that payroll transactions lacked a timesheet
showing programs worked on during the period or other evidence of proper record-keeping to support
the program allocations of salaries and related expenses in the general ledger. Context: UHU failed to keep adequate time records to support the amounts charged to the general
ledger. Allocation was based on award budget and UHU did not track time using timesheets to reallocate
time each month. Our audit work in this area consisted of internal control testwork over a
random sample of expenditures. The issue is considered systemic in nature.
Cause: UHU’s current policies do not require employees to complete timesheets for each pay period.
Payroll is allocated based on budget.
Effect or Potential Effect: UHU could inadvertently mischarge salaries and wages to its various
programs.
Questioned Costs: Undetermined
Identification as a Repeat Finding: 2020-007
Recommendation: We recommend that management enforce its current payroll policies, ensure each
employee completes a timesheet that pertains to each payroll period and 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.