Audit Finding Reference: 2023-002 Internal Controls Over Disbursements
Planned Corrective Action:
No documented review of employee reimbursements charged to grants: Our systems have required review and approvals procedures as described below but the notation of review and approval were not evide...
Audit Finding Reference: 2023-002 Internal Controls Over Disbursements
Planned Corrective Action:
No documented review of employee reimbursements charged to grants: Our systems have required review and approvals procedures as described below but the notation of review and approval were not evident. Going forward either through email or sign-off, it will show approval.
All employee reimbursement expenses are reviewed and approved by the employee’s direct manager, within the payroll system (Paylocity) prior to processing payment (with bi-weekly payroll). In addition, the grant accountant and grant manager will review the timesheets and allocation of employee expenses to confirm that they agree. The approval is submitted via email to the payroll administrator for processing of the payroll. The payroll administrator will create the journal entry in the general ledger from the approval worksheet. In addition, with the implementation of our new general ledger system, the entries are reviewed and approved within the general ledger system by upper management.
No documented review of payroll charged to grants: Our systems have required review and approvals procedures as described below but the notation of review and approval were not evident. Going forward either through email or sign-off, it will show approval.
Payroll has multiple levels of approval. In FY23, the payroll folder, that includes timesheets, grant allocations, and payroll register, would be submitted for approval to the accounting manager. The accounting manager would review and approve payroll and return the folder to the payroll administrator for payroll submission to the payroll company. Starting in FY24, payroll would be submitted via email to the grant accountant, grant manager, and the assistant controller for multiple levels of review and approval. Corrections and approvals are done via email. In addition to the email approvals, upper management approves payroll by initialing the last page of the payroll register after a complete review. Furthermore, with the implementation of our new general ledger system, the entries are reviewed and approved within the general ledger system by upper management.
Planned Implementation Date of Corrective Action: 02/01/2024
Person Responsible for Corrective Action: Vice President – Finance, Development & Administration