Finding 981306 (2023-004)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-07-01
Audit: 311249
Organization: District Bridges (DC)

AI Summary

  • Core Issue: Employees are not required to submit timesheets, leading to inaccurate tracking of salaries and wages.
  • Impacted Requirements: Compliance with Title 2 CFR Part 200, which mandates accurate records for federal funding.
  • Recommended Follow-Up: Implement a policy requiring timesheets for all employees and maintain reconciliations between timesheets and the general ledger.

Finding Text

Finding 2023-004: Time Tracking and Allocations (Allowable Costs and Activities Allowable) Federal Programs: All Criteria: 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: During our internal control testwork over payroll, we noted employees were not required to utilize or submit timesheets (unless hourly). Cause: There is no internal or formal policy by the Organization that requires the use of timesheets for tracking of time spent and on which projects/programs, including those that are federally funded. Effect or Potential Effect: The current system does not allow the Organization to accurately track and charge salaries and wages to its various programs. As a result, the Organization could inadvertently mischarge salaries and wages to those programs, including those federally funded. Questioned Costs: Indeterminable. Context: The Organization does not a documented audit trail showing the approval of reports. Recommendation: We recommend the Organization ensure each employee completes a timesheet that pertains to each payroll period and the timesheet documents the allocation of time worked on departments and projects. Furthermore, the Organization should prepare and maintain a reconciliation that shows 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.

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 404861 2023-003
    Material Weakness
  • 404862 2023-004
    Material Weakness
  • 404863 2023-003
    Material Weakness
  • 404864 2023-004
    Material Weakness
  • 404865 2023-003
    Material Weakness
  • 404866 2023-004
    Material Weakness
  • 981303 2023-003
    Material Weakness
  • 981304 2023-004
    Material Weakness
  • 981305 2023-003
    Material Weakness
  • 981307 2023-003
    Material Weakness
  • 981308 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $950,000
14.218 Community Development Block Grants/entitlement Grants $314,711