Audit 316403

Finding 2023-001, Payroll Process (Second Year repeat comment): Information on the Federal Program - Assistance Listing Number 93.224 Health Care Center Program (Direct Health Center Program Cluster). Compliance Requirements: Activities Allowed or Unallowed. Type of Finding: Significant Deficiency in internal control over financial reporting and internal controls over Federal major programs Cause - Discussions with Organization employees indicate the cause of missing documentation, approvals and inconsistencies was due to an issue with the payroll software. Criteria - Based on documented internal controls, the Organization should be able to provide approved support for employee pay rates and approved time cards in which the documented hours agree to payroll reports. There should be no inconsistences between time on timecards and payroll reports. Condition - In 18 instances out of 40 items tested,, the timecard was not electronically approved either by employee or by supervisor. In one instance, one of the timecards did not have any hours recorded. Effect - The missing support and missing approvals could result in improper payroll expenditures. Questioned Costs - Zero Recommendation - We recommend the Organization follow the documented payroll process and ensure reviews and approvals are documented.

Finding 2023-002, Cash Disbursement Process Information on the Federal Program - Assistance Listing Number 93.224 Health Care Center Program (Direct Health Center Program Cluster). Compliance Requirements: Activities Allowed or Unallowed. Type of Finding: Significant Deficiency in internal control over financial reporting and internal controls over Federal major programs Criteria - Based on documented internal controls, the Organization should be able to provide support for cash disbursements with management's approval. Condition - In 3 instances out of 25 items tested, invoices were not approved by management. In one instance, the supporting invoice was not able to be located. Cause - Discussions with Organization employees indicate the cause of missing documentation and approvals was due to lack of oversight. Effect - The missing support and missing approvals could result in improper nonpayroll expenditures. Questioned Costs - Zero Recommendation - We recommend the Organization follow the documented cash disbursement process and ensure reviews and approvals are documented.

Finding 2023-001, Payroll Process (Second Year repeat comment): Information on the Federal Program - Assistance Listing Number 93.224 Health Care Center Program (Direct Health Center Program Cluster). Compliance Requirements: Activities Allowed or Unallowed. Type of Finding: Significant Deficiency in internal control over financial reporting and internal controls over Federal major programs Cause - Discussions with Organization employees indicate the cause of missing documentation, approvals and inconsistencies was due to an issue with the payroll software. Criteria - Based on documented internal controls, the Organization should be able to provide approved support for employee pay rates and approved time cards in which the documented hours agree to payroll reports. There should be no inconsistences between time on timecards and payroll reports. Condition - In 18 instances out of 40 items tested,, the timecard was not electronically approved either by employee or by supervisor. In one instance, one of the timecards did not have any hours recorded. Effect - The missing support and missing approvals could result in improper payroll expenditures. Questioned Costs - Zero Recommendation - We recommend the Organization follow the documented payroll process and ensure reviews and approvals are documented.

Finding 2023-002, Cash Disbursement Process Information on the Federal Program - Assistance Listing Number 93.224 Health Care Center Program (Direct Health Center Program Cluster). Compliance Requirements: Activities Allowed or Unallowed. Type of Finding: Significant Deficiency in internal control over financial reporting and internal controls over Federal major programs Criteria - Based on documented internal controls, the Organization should be able to provide support for cash disbursements with management's approval. Condition - In 3 instances out of 25 items tested, invoices were not approved by management. In one instance, the supporting invoice was not able to be located. Cause - Discussions with Organization employees indicate the cause of missing documentation and approvals was due to lack of oversight. Effect - The missing support and missing approvals could result in improper nonpayroll expenditures. Questioned Costs - Zero Recommendation - We recommend the Organization follow the documented cash disbursement process and ensure reviews and approvals are documented.

Finding 2023-001, Payroll Process (Second Year repeat comment): Information on the Federal Program - Assistance Listing Number 93.224 Health Care Center Program (Direct Health Center Program Cluster). Compliance Requirements: Activities Allowed or Unallowed. Type of Finding: Significant Deficiency in internal control over financial reporting and internal controls over Federal major programs Cause - Discussions with Organization employees indicate the cause of missing documentation, approvals and inconsistencies was due to an issue with the payroll software. Criteria - Based on documented internal controls, the Organization should be able to provide approved support for employee pay rates and approved time cards in which the documented hours agree to payroll reports. There should be no inconsistences between time on timecards and payroll reports. Condition - In 18 instances out of 40 items tested,, the timecard was not electronically approved either by employee or by supervisor. In one instance, one of the timecards did not have any hours recorded. Effect - The missing support and missing approvals could result in improper payroll expenditures. Questioned Costs - Zero Recommendation - We recommend the Organization follow the documented payroll process and ensure reviews and approvals are documented.

Finding 2023-002, Cash Disbursement Process Information on the Federal Program - Assistance Listing Number 93.224 Health Care Center Program (Direct Health Center Program Cluster). Compliance Requirements: Activities Allowed or Unallowed. Type of Finding: Significant Deficiency in internal control over financial reporting and internal controls over Federal major programs Criteria - Based on documented internal controls, the Organization should be able to provide support for cash disbursements with management's approval. Condition - In 3 instances out of 25 items tested, invoices were not approved by management. In one instance, the supporting invoice was not able to be located. Cause - Discussions with Organization employees indicate the cause of missing documentation and approvals was due to lack of oversight. Effect - The missing support and missing approvals could result in improper nonpayroll expenditures. Questioned Costs - Zero Recommendation - We recommend the Organization follow the documented cash disbursement process and ensure reviews and approvals are documented.

Finding 2023-001, Payroll Process (Second Year repeat comment): Information on the Federal Program - Assistance Listing Number 93.224 Health Care Center Program (Direct Health Center Program Cluster). Compliance Requirements: Activities Allowed or Unallowed. Type of Finding: Significant Deficiency in internal control over financial reporting and internal controls over Federal major programs Cause - Discussions with Organization employees indicate the cause of missing documentation, approvals and inconsistencies was due to an issue with the payroll software. Criteria - Based on documented internal controls, the Organization should be able to provide approved support for employee pay rates and approved time cards in which the documented hours agree to payroll reports. There should be no inconsistences between time on timecards and payroll reports. Condition - In 18 instances out of 40 items tested,, the timecard was not electronically approved either by employee or by supervisor. In one instance, one of the timecards did not have any hours recorded. Effect - The missing support and missing approvals could result in improper payroll expenditures. Questioned Costs - Zero Recommendation - We recommend the Organization follow the documented payroll process and ensure reviews and approvals are documented.

Finding 2023-002, Cash Disbursement Process Information on the Federal Program - Assistance Listing Number 93.224 Health Care Center Program (Direct Health Center Program Cluster). Compliance Requirements: Activities Allowed or Unallowed. Type of Finding: Significant Deficiency in internal control over financial reporting and internal controls over Federal major programs Criteria - Based on documented internal controls, the Organization should be able to provide support for cash disbursements with management's approval. Condition - In 3 instances out of 25 items tested, invoices were not approved by management. In one instance, the supporting invoice was not able to be located. Cause - Discussions with Organization employees indicate the cause of missing documentation and approvals was due to lack of oversight. Effect - The missing support and missing approvals could result in improper nonpayroll expenditures. Questioned Costs - Zero Recommendation - We recommend the Organization follow the documented cash disbursement process and ensure reviews and approvals are documented.