Finding 977723 (2023-001)

ALN: 93.318 and 93.083 Condition: The Organization allocated the payroll expenses to the grants using budgeted amounts rather than by actual timesheets from January 2023 to June 2023. Criteria: Under the Uniform Guidance, the costs need to be supported by appropriate documentation and time records such as signed and approved timesheets with hours allocated to be charged to the grants. Cause: Lack of specific controls and procedures to ensure compliance for payroll expenses incurred to the grants. Effect: Without proper controls in place for payroll allocation by employee timesheets, the Organization is at risk of making a disallowed expenditure for expenditures incurred. Questioned Costs: None. Context: The Organization did not allocate payroll expenses on an individual timesheet basis from January 2023 to June 2023. The Organization allocated payroll expenses based on effort and applied a percentage accordingly using gross pay to individual departments and programs from January 2023 to June 2023. Identification as a Repeat Finding: Yes. Repeat finding of 2022-003. Recommendation: We recommend that the Organization implement internal policies and procedures regarding the allowability of costs in that all expenditures are reviewed and approved by the appropriate individual in order to determine whether the expense amount is correct, properly recorded, and properly supported by either an invoice or timesheet. Views of Responsible Officials and Planned Corrective Action: See Corrective Action Plan.