Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Programs: Refugee and Entrant Assistance State/Replacement Designee Administered Programs –
ALN 93.566 and Refugee and Entrant Assistant Discretionary Grants – ALN 93.576
Type of Finding: Noncompliance – Significant deficiency in Internal Control over Compliance
Criteria: The Uniform Guidance requires charges to federal awards for salaries and wages be based on records that accurately reflect the work performed. The Organization is responsible for having internal controls to ensure compliance with this provision.
Condition: Salaries and wages of employees were charged or allocated to the major program based on the budget rather than actual time spent.
Questioned Costs: Unknown
Cause: Time and effort reporting did not capture the actual time worked on specific grants for certain employees.
Effect: Because the actual time spent on the major program by certain employees was not maintained the major program could have been over or under charged by using the budgeted amount.
Recommendation: We recommend the Organization implement controls over time and effort reporting such that the actual amount of time spent on each funding source is identified.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has taken corrective action by purchasing and implementing software which will track the employee’s actual time spent. This software was placed in service on October 1, 2023.