Ellis Early Learning, Inc.Non-Profit

Retention of Files and Records - Criteria: CFR 200.430 Compensation - Records of salaries must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. These records should include timesheets, or other time records that are signed and approved by the appropriate personnel to confirm that the time is accurate. Condition and Context: In testing the compliance and accuracy of allowable payroll costs during the award year, it was noted that the Organization did not maintain certain appropriate documentation of time and effort, specifically timesheets showing the review and approval process for certain employees during the award year. Questioned Costs: None. Cause: The Organization has policies and procedures in place to ensure that the appropriate documentation for time and effort is maintained and supported by a system of internal control. However, in this case the procedures were not adhered due to turnover in key employees and change in payroll providers. Effect: The absence of documentation that supports the review and approval process of time and effort reporting makes it difficult for management to substantiate that the payroll charges are accurate and could lead to non-compliance with Federal requirements. Perspective Information: We tested 25 timesheets. Of those selections 1 timesheet was missing and 1 timesheet did not have the proper approval. The sampling methodology used was a statistically valid sample. Recurring Finding: No. Recommendation:We recommend that the Organization modify its policies and procedures relating to time and effort reporting to align with any changes in payroll processes and any changes in personnel at the Organization to ensure that appropriate support is maintained at all times at the Organization.

Condition and Context: In testing the compliance and accuracy of allowable payroll costs during the award year, it was noted that the Organization did not maintain the appropriate documentation of time and effort, specifically documentation of the review and approval process for certain pay periods during the award year. Cause: The Organization has policies and procedures in place to ensure that the appropriate documentation for time and effort are maintained and supported by a system of internal control. However, in this case the procedures were not adhered due to a change in payroll processes. Effect: The absence of documentation that supports the review and approval process of time and effort reporting makes it difficult for management to substantiate that the payroll charges are accurate and could lead to non-compliance with Federal requirements.

Condition and Context: The parents/guardians of children receiving either subsidized or full tuition coverage are required to meet certain eligibility requirements prior to program enrollment. The Federal grantor requires that the grant recipient maintains effective controls over the Federal award, including the retention of all pertinent parent/guardian records and files that support eligibility. In testing the eligibility compliance of the federal award for the children enrolled in the CCDF cluster during the award year, it was noted that 6 out of a sample of 40 testing selections were missing the required files and records that would support the eligibility for participation in the program. Cause: The Organization has policies and procedures in place to properly maintain the files and records of eligible program participants. However, in this case the procedures were not adhered to properly by certain program directors during the award year, and as a result certain records were lost/misplaced. Effect: The absence of these records makes it difficult for management to be able to verify and substantiate that these participants qualified for the program and could result in improper eligibility.