CHILD-PARENT CENTERS, INC.

Assistance Listing Number and Title: 93.600 Head Start Federal Agency: U.S. Department of Health and Human Services Federal Award Numbers: 09CH010651 Grant period: September 1, 2022 - August 31, 2023 As discussed at Finding 2023-001, internal controls should be in place to provide reasonable assurance that employee timesheets are appropriately approved by supervisors at the end of the pay period. We found three instances where time sheets were not approved by an appropriate supervisor. We recommend the Organization adhere to its policies and procedures for approving timesheets, reevaluate if more time should be provided for supervisor signoff, and require supervisor response as appropriate to emails to ensure compliance with the controls.

As discussed at Finding 2022-001, internal controls should be in place to provide reasonable assurance that employee timesheets are appropriately approved by supervisors at the end of the pay period. We found two instances where time sheets were not approved by an appropriate supervisor. We recommend the Organization adhere to its policies and procedures for approving timesheets, reevaluate if more time should be provided for supervisor signoff, and require supervisor response as appropriate to emails to ensure compliance with the controls. Criteria: Internal controls should be in place to provide reasonable assurance that employee timesheets are appropriately approved by supervisors at the end of the pay period and prior to the time file transfer for payroll processing. Condition: In our sample of payroll transactions, timesheets were missing approval by an appropriate supervisor for one or more days in the pay period. Cause: The Organization has controls in place requiring appropriate supervisor approval; however, there appears to be inadequate time provided to supervisors to effectively and consistently approve timesheets at the end of the pay period. Effect: Without proper authorization of timesheets, information on the timesheets may not be complete and accurate, employees may be incorrectly compensated, and benefit accrual balances may be over or understated. Recommendation: We recommend the Organization adhere to its policies and procedures for approving timesheets and reevaluate if more time should be provided for supervisor signoff. Auditee response: Child-Parent Centers acknowledges and agrees with this finding. We are in communication with our staff regarding the importance of supervisor approvals, and leadership is making it a priority to improve existing controls and identifying any areas where new controls may be required.