American College of Occupational and Environmental MedicineNon-Profit

Condition: Cost allocations for salaries and related expenses allocated across program activities, including federal award programs, did not agree to the approved timecards. Criteria: Internal controls should be in place and consistently applied that provide reasonable assurance that cost allocations represent the correct allocation of employee-related costs based on the time spent by the applicable employees. Cause: Timecards submitted are not consistently reconciled to the vouchers submitted for federal and other programs. Effect: Because the reconciliation process in place was not consistently followed to agree timecards to cost allocations, it is possible that an employee's time may be inappropriately allocated amongst functional activities, including federal award programs. Recommendation: Procedures should be consistently applied requiring the reconciliation of employee timecards to actual costs allocated and charged to federal and other programs. Views of Responsible Officialsand Planned Corrective Actions: To ensure compliance with grant requirementsand address the issue with employee timecards and vouchers submitted, the following steps will be implemented: 1. Time Tracking: Employees will continue to be required to record their time every two weeks (through HourTimeSheet), ensuring that the hours worked align with the percentage of time allocated to the grant for those two weeks. 2. Clear Communication: The Project Director will clarify the importance of matching monthly hours with the percentage allocated to all staff participating in the grant. This will help prevent misunderstandings regarding time reporting. 3. Reviews: The Project Director will continue to conduct monthly reviews of timecards to verify that reported hours correspond with the grant’s allocation requirements before submitting vouchers. By implementing these measures, we aim to ensure that timecards accurately reflect the allocation of employee-related costs on a monthly basis, promoting compliance with grant requirements moving forward.

Condition: Cost allocations for salaries and related expenses allocated across program activities, including federal award programs, did not agree to the approved timecards. Criteria: Internal controls should be in place and consistently applied that provide reasonable assurance that cost allocations represent the correct allocation of employee-related costs based on the time spent by the applicable employees. Cause: Timecards submitted are not consistently reconciled to the vouchers submitted for federal and other programs. Effect: Because the reconciliation process in place was not consistently followed to agree timecards to cost allocations, it is possible that an employee's time may be inappropriately allocated amongst functional activities, including federal award programs. Recommendation: Procedures should be consistently applied requiring the reconciliation of employee timecards to actual costs allocated and charged to federal and other programs. Management's Response: We agree with this finding. See corrective action plan.