Audit 341337

Condition: One pay period requested for reimbursement exceeded the payroll that was paid to the employee by $783 as the request was prepared based on the employee’s time sheet, not based on the payroll paid. Criteria: Federal funds should be expended only for allowable activities and allowable costs. Cause: Ineffective oversight over the preparation of requests for reimbursement. Effect: Although not material, the grant was billed for a non-allowable activity and a non-allowable cost, which could be disallowed. Recommendation: Closer attention should be paid when preparing the requests for reimbursement to ensure only allowable expenses are being included in the request. A secondary review of the request and supporting documentation should be performed by someone other than the preparer. Views of Responsible Officials and Planned Corrective Actions: We acknowledge the lack of oversight in preparing the reimbursement request, which resulted in an amount exceeding the payroll paid to the employee. This issue arose due to reliance on timesheet data without reconciling it with actual payroll disbursements. A detailed checklist will be introduced to ensure all requests for reimbursement match supporting payroll documentation. This checklist will include a reconciliation step for timesheet data and payroll disbursement records. Staff involved in grant management and reimbursement preparation will receive additional instruction on federal compliance requirements, with a focus on allowable costs and activities.

Condition: For one pay period, the hours entered into the payroll system for an employee were less than the hours per their time sheet. Criteria: In accordance with the procedures established by AACA, payroll is to be reviewed by both the Director of Finance and CEO. Cause: Controls were not implemented and errors are going undetected / unnoticed. Effect: The employee was underpaid. Also, the incorrect amount was requested for reimbursement. Recommendation: Closer attention should be paid when performing the review of payroll to ensure that all employee hours and dollars are accurate and in agreement with the supporting documentation (ie. employee time sheets). Also, the employee should be retroactively paid. Views of Responsible Officials and Planned Corrective Actions: We recognize the error in payroll hours and acknowledge the need for stricter review procedures. The underpaid employee has already received retroactive compensation in the pay period ending August 30, 2024 to rectify the error. A secondary review process will be implemented which will involve a designated staff member reconciling hours recorded on timesheets with the payroll system entries before final approval. Staff involved in payroll processing will be reminded on the importance of accuracy and the potential implications of errors. This will include step-by-step instructions for validating payroll entries.

Condition: One pay period requested for reimbursement exceeded the payroll that was paid to the employee by $783 as the request was prepared based on the employee’s time sheet, not based on the payroll paid. Criteria: Federal funds should be expended only for allowable activities and allowable costs. Cause: Ineffective oversight over the preparation of requests for reimbursement. Effect: Although not material, the grant was billed for a non-allowable activity and a non-allowable cost, which could be disallowed. Recommendation: Closer attention should be paid when preparing the requests for reimbursement to ensure only allowable expenses are being included in the request. A secondary review of the request and supporting documentation should be performed by someone other than the preparer. Views of Responsible Officials and Planned Corrective Actions: We acknowledge the lack of oversight in preparing the reimbursement request, which resulted in an amount exceeding the payroll paid to the employee. This issue arose due to reliance on timesheet data without reconciling it with actual payroll disbursements. A detailed checklist will be introduced to ensure all requests for reimbursement match supporting payroll documentation. This checklist will include a reconciliation step for timesheet data and payroll disbursement records. Staff involved in grant management and reimbursement preparation will receive additional instruction on federal compliance requirements, with a focus on allowable costs and activities.

Condition: For one pay period, the hours entered into the payroll system for an employee were less than the hours per their time sheet. Criteria: In accordance with the procedures established by AACA, payroll is to be reviewed by both the Director of Finance and CEO. Cause: Controls were not implemented and errors are going undetected / unnoticed. Effect: The employee was underpaid. Also, the incorrect amount was requested for reimbursement. Recommendation: Closer attention should be paid when performing the review of payroll to ensure that all employee hours and dollars are accurate and in agreement with the supporting documentation (ie. employee time sheets). Also, the employee should be retroactively paid. Views of Responsible Officials and Planned Corrective Actions: We recognize the error in payroll hours and acknowledge the need for stricter review procedures. The underpaid employee has already received retroactive compensation in the pay period ending August 30, 2024 to rectify the error. A secondary review process will be implemented which will involve a designated staff member reconciling hours recorded on timesheets with the payroll system entries before final approval. Staff involved in payroll processing will be reminded on the importance of accuracy and the potential implications of errors. This will include step-by-step instructions for validating payroll entries.