Audit 324071

Review of Payroll Registers – Internal Controls over Allowable Costs and Activities and Period of Performance (Material Weakness) Federal Program Information: Funding Agency: U.S. Department of Treasury FALN: 21.027 Federal Award Identification Numbers: GA-0010655 Pass Through Entity: State of Georgia Award Year: 2021-2023 Criteria: Under 2 CFR Section 200.303(a), non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Additionally, under 2 CFR Section 200.430(i) compensation records must provide reasonable assurance that the charges are accurate, allowable and properly allocated. Condition: There is no documentation of payroll registers being reviewed for accuracy by management on a timely basis. Effect: Failure to review payroll registers for accuracy by management on a timely basis could result in intentional or unintentional material misstatements and an increased risk for inaccurate financial reporting. Cause: The review of the payroll registers was not properly documented due to several changes in personnel within management. Known Questioned Costs: None Perspective: This finding represents a systemic problem prior to 2023 when a new process was put into place to properly document the review. Repeat Finding: No Recommendation: We recommend that internal controls be strengthened and processes implemented to ensure payroll registers are reviewed for accuracy by management on a timely basis and that the review be documented.

Documentation of Approved Pay Rates – Internal Controls over Allowable Costs and Activities (Material Weakness) Federal Program Information: Funding Agency: U.S. Department of Treasury FALN: 21.027 Federal Award Identification Numbers: GA-0010655 Pass Through Entity: State of Georgia Award Year: 2021-2023 Criteria: Under 2 CFR Section 200.303(a), non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Additionally, under 2 CFR Section 200.430(i) compensation records must provide reasonable assurance that the charges are accurate, allowable and properly allocated. Condition: There is no documentation of approved pay rate. Effect: Failure to maintain documentation of approved pay rates could result in intentional or unintentional material misstatements and an increased risk for inaccurate financial reporting. Cause: The pay rate approval was not properly documented due to several changes in personnel within management. Repeat Finding: No Recommendation: We recommend that internal controls be strengthened and processes implemented to ensure all employee pay rates are documented and approved by management. Known Questioned Costs: $3,446 Likely Questioned Costs: $24,769

Review of Payroll Registers – Internal Controls over Allowable Costs and Activities and Period of Performance (Material Weakness) Federal Program Information: Funding Agency: U.S. Department of Treasury FALN: 21.027 Federal Award Identification Numbers: GA-0010655 Pass Through Entity: State of Georgia Award Year: 2021-2023 Criteria: Under 2 CFR Section 200.303(a), non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Additionally, under 2 CFR Section 200.430(i) compensation records must provide reasonable assurance that the charges are accurate, allowable and properly allocated. Condition: There is no documentation of payroll registers being reviewed for accuracy by management on a timely basis. Effect: Failure to review payroll registers for accuracy by management on a timely basis could result in intentional or unintentional material misstatements and an increased risk for inaccurate financial reporting. Cause: The review of the payroll registers was not properly documented due to several changes in personnel within management. Known Questioned Costs: None Perspective: This finding represents a systemic problem prior to 2023 when a new process was put into place to properly document the review. Repeat Finding: No Recommendation: We recommend that internal controls be strengthened and processes implemented to ensure payroll registers are reviewed for accuracy by management on a timely basis and that the review be documented.

Documentation of Approved Pay Rates – Internal Controls over Allowable Costs and Activities (Material Weakness) Federal Program Information: Funding Agency: U.S. Department of Treasury FALN: 21.027 Federal Award Identification Numbers: GA-0010655 Pass Through Entity: State of Georgia Award Year: 2021-2023 Criteria: Under 2 CFR Section 200.303(a), non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Additionally, under 2 CFR Section 200.430(i) compensation records must provide reasonable assurance that the charges are accurate, allowable and properly allocated. Condition: There is no documentation of approved pay rate. Effect: Failure to maintain documentation of approved pay rates could result in intentional or unintentional material misstatements and an increased risk for inaccurate financial reporting. Cause: The pay rate approval was not properly documented due to several changes in personnel within management. Repeat Finding: No Recommendation: We recommend that internal controls be strengthened and processes implemented to ensure all employee pay rates are documented and approved by management. Known Questioned Costs: $3,446 Likely Questioned Costs: $24,769