Los Angeles General Medical Center Foundation, Inc.Non-Profit

C. Findings and Questioned Costs—Major Federal Award Programs Finding 2022‐002: Inaccurate Staff Timesheet Support Federal Grantor: US Department of Health and Human Services Passed Through: Public Health Institute Community Health Councils, Inc. and County of Los Angeles Program Name: Epidemiology and Laboratory Capacity for Infectious Diseases and Ending the HIV Epidemic: A Plan for America Assistance Listing Number: 93.323 and 93.686 Grant Number: AR02042, 21‐DPH‐CHW‐13, and PH‐004055 Significant Deficiency over Compliance: Activities Allowed and Unallowed Criteria: Under OMB Super‐Circular 2 CFR Part 200.430.(i)(1), charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Furthermore, the records must be supported by a system of internal control which provides reasonable assurance that the charges are accurately, allowable and properly allocated, and reasonably reflect the total activity for which the employee is compensated, etc. Condition: From the contract billings for the year ended June 30, 2022, we selected four months to examine documentation for all payroll expenditures billed to federal reimbursement contracts to test for compliance with timesheet recording requirements. We determined a few instances whereby employee timesheets did not reconcile to the amounts billed to the federal contracts. The billings related to these instances were subsequently corrected by management. Cause: Employees have a lack of clarity and an information gap when being transitioned between contracts resulting in inaccurately completed timesheets. Effect or Potential Effect: When contract changes occur, timesheet references to contracts can become incorrect, resulting in related expenses being improperly recorded and billed. Questioned Costs: None Recommendation: We recommend that at each monthly staff meeting a discussion occur regarding contracts that are ending and beginning in the next month. Instructions should be made to applicable employees as to the proper charging of hours to those contracts. Views of responsible officials and planned corrective actions: The Foundation agrees with the finding; please refer to corrective action plan beginning on page 28.