We appreciate the auditor's identification of the material weakness in our internal controls over the documentation of approved pay rates related to our federal award. We understand the importance of maintaining adequate internal controls to prevent, detect, and correct misstatements on a timely bas...
We appreciate the auditor's identification of the material weakness in our internal controls over the documentation of approved pay rates related to our federal award. We understand the importance of maintaining adequate internal controls to prevent, detect, and correct misstatements on a timely basis.
1. Documentation Process: We will implement a documentation process to ensure that all employee pay rates related to our federal award are documented and approved by management. Specifically, we will:
a. Assign responsibility for documenting and approving employee pay rates related to our federal award to a specific staff member.
b. Establish a process for documenting and approving employee pay rates related to our federal award, including the use of a standardized form.
c. Ensure that all employee pay rates related to our federal award are documented and approved before payroll is processed.
d. Investigate and resolve any discrepancies identified during the documentation and approval process related to our federal award.
e. Document the documentation and approval process related to our federal award and ensure that all documentation is maintained.
2. Internal Controls: We will strengthen our internal controls over the documentation of approved pay rates to ensure that misstatements are prevented, detected, and corrected on a timely basis. Specifically, we will:
a. Establish a process for reviewing all employee pay rates by management.
b. Ensure that all staff members responsible for documenting and approving employee pay rates are trained on the new process and the importance of maintaining adequate internal controls.
c. Document the new process and internal controls in a written policy and procedure manual.
3. Personnel: We will ensure that personnel changes do not impact our internal controls over the documentation of approved pay rates. Specifically, we will:
a. Cross-train staff members to ensure that there is adequate coverage for all employee pay rates.
b. Establish a process for documenting and communicating changes in personnel responsibilities related to the documentation and approval of employee pay rates.
We believe that these corrective actions will effectively address the material weakness identified by the auditor and strengthen our internal controls over the documentation of approved pay rates. We are committed to ensuring the accuracy and integrity of our financial reporting and maintaining the trust of our stakeholders.
Person Responsible: Anthony Jayesingha
Date Corrected: 7/31/2023