CITY OF OSHKOSHLocal Government

UNIFORM GUIDANCE AND STATE SINGLE AUDIT GUIDELINES FINDINGS: Time & Effort Documentation Federal Agency: US Department of Housing and Urban Development; Federal program title: Community Development Block Grant Entitlement Program; CFDA Number: 14.218; Award Period: 5/1/2019 ? 4/30/2020; Type of Finding: Significant Deficiency in Internal Control over Compliance; Compliance Requirement: Allowable Costs Criteria: Total salaries charged to Federal awards (including extra service pay) are subject to the Standards of Documentation as described by 2 CFR ?200.430(i). Per this section, salaries and wages charged to Federal awards must be based on records that accurately reflect the work performed. These records must: ? Be incorporated into the organization?s official records; ? Reasonably reflect the total activity for which the employee is compensating across all grant-related and non-grant related activities (100% effort); ? Support the distribution of employee salary across multiple activities or cost objectives (for example, effort spent on multiple federal awards, spent on general/or administrative activities, vacation, sick leave, leave without pay, etc.); and ? Utilize an "after-the-fact" review of the employee?s actual hours worked during the reporting period for identifying and correcting significant changes (as defined by the organization?s written policies). Condition: The Community Development Department of the City of Oshkosh is responsible for the operation of the Community Development Block Grant. Our audit noted that the City?s Community Development Department utilizes time studies to allocate payroll costs between grant and non-grant activities. Documentation was not maintained for one individual within the department to support the allocation of payroll costs. Questioned Costs: NEED Cause: The individual in question is no longer employed by the City and as such the City was not able to locate the necessary documentation. Effect: The City did not have the required supporting documentation to support the allocation of payroll costs to the grant program. The City did not allocate all of the employee?s wages, and the position was directly associated with the grant program and therefore no questioned costs were identified. Recommendation: We recommend the Department establish a policy and implement procedures to ensure compliance with the standards associated with the documentation of payroll costs under Uniform Guidance View of Responsible Officials There is no disagreement with the audit finding.