Finding Text
Finding 2023-003: Time Tracking and Reporting
Information on the Federal Programs: 19.517 and 98.001
Criteria or Specific Requirement: According to 2 CFR Section 200.430(i) charges to Federal awards
for salaries and wages must be based on records that accurately reflect the work performed. These
records must:
I. Be supported by a system of internal control which provides reasonable assurance that the
charges are accurate, allowable, and properly allocated;
II. Be incorporated into the official records of the non-Federal entity;
III. Reasonably reflect the total activity for which the employee is compensated by the non-Federal
entity, not exceeding 100% of compensated activities;
IV. Encompass federally-assisted and all other activities compensated by the non-Federal entity on an
integrated basis, but may include the use of subsidiary records as defined in the non-Federal
entity’s written policy;
V. Comply with the established accounting policies and practices of the non-Federal entity;
VI. [Reserved]
VII. Support the distribution of the employee’s salary or wages among specific activities or cost
objectives if the employee works on more than one Federal award; a Federal award and non-
Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities
which are allocated using different allocation bases; or an unallowable activity and a direct or
indirect cost activity.
VIII.Budget estimates (i.e., estimates determined before the services are performed) alone do not
qualify as support for charges to Federal awards.”Condition: During our testwork, we determined that CVT did not adequately document employee time
spent on each Federal program when multiple Federal programs were in process in one location.
Cause: Federal awards that are run concurrently within the same location are generally for the same
over-all program objective. Employees are not able to consistently record time spent on each particular
Federal award within their timesheets. As a result, allocations of time made in the general ledger do
not always reflect what is recorded on the timesheet.
Effect or Potential Effect: CVT could inadvertently charge time to the Federal award that was not truly
spent working on the Federal award. This could result in the Federal Government over-paying for
salaries associated with the award.
Questioned Costs: None noted.
Context: We noted that employees selected for testing did not always have completed and detailed
timesheets outlining hours spent working on various awards that are run in the same location.
Additionally, we noted instances in which completed timesheets did not agree to final allocation in the
accounting system.
Identification as a Repeat Finding: 2022-002 and 2022-003
Recommendation: We recommend that management should develop appropriate documentation to
support when an employee charges a program that is funded by various donors. A consistent and
reasonably methodology which may be based on awards budgets should be the basis of the ending
allocation.