Finding 2013-007, continued:
Recommendation:
We recommend the University review its current procedures for their inventory process and implement a control that will ensure equipment records are reconciled to the physical inventory taken at least once every two years.
Current year status:
See finding 2014-002.
Finding 2013-008:
Federal Program: U.S. Department of Education HBCU – Grad, CFDA 84.382G Food Safety in Changing Economy, CFDA 10.443 Farm Production Marketing Farm Energy, CFDA 10.443
During our review of the time and effort reports, we noted nine reports not being approved in a timely manner, two not signed by the employee, and two not originally completed for all personnel charged to the grant.
Per the OMB Circular A-21 compensation for personal services is allowed when payroll is distributed using an acceptable method such as after the fact activity records. Under this system the distribution of salaries and wages by the institution will be supported by activity reports as prescribed below. Reports will reasonably reflect the activities for which employees are compensated by the institution. To confirm that the distribution of activity represents a reasonable estimate of the work performed by the employee during the period, the reports will be signed by the employee, principal investigator, or responsible official(s) using suitable means of verification that the work was performed.
The incomplete time and effort reports is due to a lack of management oversight and lack of internal controls in place to ensure that all the time and effort reports are completed correctly and signed and dated by the appropriate personnel and submitted to the sponsoring agent in a timely manner.
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