Payroll Processing - Condition:There was a lack of internal control oversight over the payroll process such that it allowed several instances and inconsistencies in the entity’s payroll records and processing. Cause: We noted for 3 out of 20 sample selections that the hours recorded in the timesheets did not match the hours paid per the payroll journal. Effect: CDCFC payroll internal controls did not prevent or detect errors in their payroll processing system and did not provide for the timely corrections of those errors. Management informed us that their payroll processing system locks timecards at the end of the payroll period each week. Once the timecards are locked, no further changes can be made to the timecards by managers or payroll administrators. CDCFC’s payroll process requires payroll administrators to confirm with supervisors that the hours reported in timecards are correct. Any changes are done directly to the pay grid. However, the confirmation process does not appear to adequately documents these revisions. CDCFC informed us that their process is done verbally by phone calls. Result: The payroll system is not adequately documenting any revisions in timecard processing. We believe this payroll processing could allow errors to occur. It was not practical to determine the rate of occurrence of these payroll processing overrides or to verify the proper corrections were being made.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Payroll Processing - Condition:There was a lack of internal control oversight over the payroll process such that it allowed several instances and inconsistencies in the entity’s payroll records and processing. Cause: We noted for 3 out of 20 sample selections that the hours recorded in the timesheets did not match the hours paid per the payroll journal. Effect: CDCFC payroll internal controls did not prevent or detect errors in their payroll processing system and did not provide for the timely corrections of those errors. Management informed us that their payroll processing system locks timecards at the end of the payroll period each week. Once the timecards are locked, no further changes can be made to the timecards by managers or payroll administrators. CDCFC’s payroll process requires payroll administrators to confirm with supervisors that the hours reported in timecards are correct. Any changes are done directly to the pay grid. However, the confirmation process does not appear to adequately documents these revisions. CDCFC informed us that their process is done verbally by phone calls. Result: The payroll system is not adequately documenting any revisions in timecard processing. We believe this payroll processing could allow errors to occur. It was not practical to determine the rate of occurrence of these payroll processing overrides or to verify the proper corrections were being made.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.
Monitoring and Tracking Grant Expenses - Condition: During the audit of the Schedule of Expenditures of Federal Awards (SEFA), it was noted that CDCFC lacks proper monitoring mechanisms to accurately track and report expenditures by each specific program. Cause: Personnel responsible for program grant reporting and compliance may not have sufficient technical expertise, training or supervision due to significant change in the management team composition. Effect: Without adequate guidance, tracking and monitoring systems being in place, there is a risk of inaccurate reporting of federal expenditures, which could result in noncompliance with federal regulations and misallocation of funds. Result: We noted during the audit difficulties in management being able to provide us with supporting information that would allow the auditors to reconcile the SEFA to the financial statements based on the grant program involved. In addition, management’s basis for reporting expenses on a functional basis could not be verified. We noted significant allocation differences in expenses in 2021 as compared to prior year expense allocations.