Audit Report 06-03: Single Site Audit of Greenpoint Manufacturing and Design Center-June 1, 2004
On October 18, 2005, the OIG issued Audit Report 06-03, Single Site Audit of Greenpoint Manufacturing and Design Center: June 1, 2004. The OIG found that Greenpoint Manufacturing and Design Center (GMDC) employees submitted weekly activity reports that did not comply with the requirement to document salaries by maintaining personnel activity reports. As a result, the auditors questioned costs of $347,692.
A prior year audit finding, from Audit Report 04-24, for the year ended August 31, 2002, found that GMDC did not comply with the requirement of documenting salaries by maintaining personnel activity reports and approved employee salary authorizations. In addition, monthly cash requisitions utilized budgeted, not actual salaries. This finding resulted in the auditors questioning costs of $331,489. Greenpoint Manufacturing and Design Center (GMDC) provided a corrective action plan indicating that it was in the process of designing a system to track grant-related activity by employee. Additionally, GMDC stated that the CEO would begin to authorize all staff salaries within 30 days and beginning in September 2002, GMDC would use actual rather than budgeted salaries for all reimbursements. The OIG concurred with management decision's not to take further action since the grant was no longer active and was already closed out.
In light of the IPA’s recent finding, the OIG recommended that the Assistant Administrator for Administration take appropriate action in accordance with relevant OMB guidance. According to OMB Circular A-122, the grantee should be requested, at a minimum, to provide proper documentation to support the questioned costs, including signed personnel certifications of time and effort (activity reports), if appropriate or to refund the amounts questioned.