Wellspring Family Services, a Seattle-based nonprofit working to end family homelessness, needed better payroll reporting to document how grant money was spent. Funders required actual employee hours by project rather than fixed salary allocation percentages, and gaps in reporting were causing failed audits and delayed fund release. Wellspring implemented ADP Workforce Now with ADP Timebank/Grant Allocation to report salary hours and earnings by grant, role and project. The organization passed its first audit after implementation, received contract payments on time and reduced audit preparation from about a week and a half to about two hours.
It's been a huge success. We passed our first audit with flying colors and are getting our contracts paid in a timely manner. Now everything is accounted for which is huge!
Debbie Owens,
Payroll and Benefits Administrator
Wellspring Family Services
| Challenge | ADP capability | What we did | Result |
|---|---|---|---|
| Gaps in payroll and accounting reporting caused failed audits and delayed grant fund release for a nonprofit. | ADP Workforce Now® | Centralized payroll and grant reporting through ADP Workforce Now and ADP Timebank/Grant Allocation to document how grant money was spent. | Improved audit readiness and helped Wellspring get grant funds released on time. |
| Fixed-percentage salary allocation did not show actual employee hours worked on each grant project. | ADP Workforce Now® | Enabled actual employee hours to be allocated and reported by project using ADP Timebank/Grant Allocation. | Replaced general salary allocation estimates with actual-hours documentation funders needed. |
| HR lacked a streamlined way to confirm employee hours worked on grant-funded contracts. | ADP Workforce Now® | Automated contract-hour reporting with ADP Grant Allocation reports showing the exact hours employees worked on each contract. | Eliminated HR back-and-forth to confirm hours and supported timely contract payment. |
| Manual audit preparation across more than 200 pay codes and 50 contracts created heavy administrative burden. | ADP Workforce Now® | Simplified audit reporting by making validated payroll and grant allocation information readily available through ADP. | Reduced audit preparation time from about a week and a half to about two hours. |
| Nonprofit implementation complexity required industry-specific guidance to avoid setup pitfalls. | ADP Workforce Now® | Guided Wellspring through implementation with a specialist knowledgeable about nonprofit grant allocation needs. | Supported a successful implementation and ongoing workflows that worked smoothly after launch. |
| Grant salary reporting across grants, roles, projects and overtime created complexity for a nonprofit employer. | ADP Workforce Now® | Reported salary hours and earnings by grant, role and project while redistributing overtime earnings across grants for hourly employees. | Saved time and reduced reporting guesswork so Wellspring could provide funders with required information. |
How can nonprofits improve grant reporting for audits?
Nonprofits can improve grant reporting for audits by replacing estimate-based salary allocations with payroll reports that show actual employee hours by grant, role and project. Wellspring Family Services, a Seattle nonprofit working to end family homelessness, used [ADP Workforce Now](https://www.adp.com/what-we-offer/products/adp-workforce-now.aspx) with ADP Timebank/Grant Allocation after reporting gaps caused failed audits and delayed fund release. The system helped Wellspring prove what it was billing, pass audits and get contracts paid on time. For grant-funded nonprofits, audit-ready payroll reporting can protect funding and reduce last-minute administrative work.
What payroll solution supports grant allocation for nonprofits?
A payroll solution that supports grant allocation should report salary hours and earnings by grant, role and project, and handle overtime redistribution for hourly employees. Wellspring Family Services used [ADP Workforce Now](https://www.adp.com/what-we-offer/products/adp-workforce-now.aspx) with ADP Timebank/Grant Allocation to manage more than 200 pay codes across 50 contracts. The ADP feature was designed with nonprofits in mind and helped Wellspring reduce guesswork in reporting. For nonprofits with complex funding streams, grant allocation capabilities can make payroll data more usable for audits and funder reporting.
Can payroll technology reduce audit preparation time for nonprofits?
Payroll technology can reduce audit preparation time for nonprofits when it makes validated payroll and grant allocation information readily available. Wellspring Family Services previously spent about a week and a half preparing information for each audit while managing over 200 pay codes and 50 contracts. After implementing [ADP Workforce Now](https://www.adp.com/what-we-offer/products/adp-workforce-now.aspx), audit preparation took about two hours because ADP provided much of the needed information. This is especially valuable for nonprofits that face several audits each year and need to respond efficiently to auditor requests.
Why do nonprofits need actual-hours reporting for grant-funded employees?
Nonprofits need actual-hours reporting for grant-funded employees because funders may require proof of the specific time employees spend on each project before releasing funds. Wellspring Family Services had been using general or fixed percentages to show salary allocations, but funders needed actual employee hours by project. With ADP Timebank/Grant Allocation and [ADP Workforce Now](https://www.adp.com/what-we-offer/products/adp-workforce-now.aspx), Wellspring could provide reports showing exact hours worked on each contract. For nonprofits funded by grants, actual-hours reporting strengthens compliance, billing support and funder confidence. It also gives finance and payroll teams a clearer record when funders ask how grant dollars were used.
How important is implementation support for nonprofit payroll reporting?
Implementation support is important for nonprofit payroll reporting because grant allocation workflows can involve specialized rules, funder expectations and operational details that are easy to miss during setup. Wellspring Family Services credited its ADP implementation specialist with understanding the nonprofit space, explaining what to do and what to avoid, and guiding the organization through implementation. Wellspring then reported that the system worked smoothly after launch. For nonprofits implementing payroll and grant allocation reporting, knowledgeable support can reduce setup risk and help the organization adopt the new process with confidence.
