Finding Text
Federal Agency: U.S. Department of Health and Human Services
Compliance Requirement: Activities Allowed, Allowable Costs (Payroll)
Type of Finding: Significant Deficiency in Internal Control over Compliance
Federal Program: 93.696 – Certified Community Behavioral Health Clinics
Grant Award: 1H79SM086741-01
Condition/Context
During testing over payroll, we noted that out of ten (10) employees selected for testing, documentation of time and effort for one employee was not sufficiently documented, as the allocation of time and effort spent on program-related and general and administrative activities according to the time reporting system did not agree with the related accounting records.
Criteria
2 CFR part 200.430 of the Uniform Guidance requires that “charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must….be incorporated into the official records and…support the distribution of the employee’s salary or wages among specific activities.”
Cause
Sufficient documentation related to time and effort was not maintained by management for the above employee.
Effect
It could not be determined if the excess time and effort was related to the federal award programs and, therefore, appropriately included as federal expenditures.
Questioned Costs
Not determinable since it was not clear if the employee partially or fully worked on program-related activities.
Recommendation
We recommend that management implement procedures to ensure that all time and effort spent on federal award programs be adequately documented with underlying contracts, offer letters, personnel action forms, and time sheets.
Views of Responsible Officials and Planned Corrective Actions
See corrective actions plans section.