2022-001 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) - 93.323 and Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)- 10.557 Condition During testing, it was discovered that errors were made while allocating expenditures between grants. In addition, ...
2022-001 Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) - 93.323 and Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)- 10.557 Condition During testing, it was discovered that errors were made while allocating expenditures between grants. In addition, errors were made when summarizing mileage data that was then used in the allocation process. Context Payroll in the amount of $144 was improperly allocated amongst budget items within the WIC grant, and estimated total allocation errors are $4,995. Due to a data entry error during the allocation process, ELC payroll was understated in the amount of $13, and estimated total errors are $25. Actual mileage logs for December were less than the total calculated by 6 miles. Actual mileage logs for November were higher than the total calculated by 138 total miles. Actual mileage logs for October were higher than the total calculated by 114 total miles, and no logs were scanned for two vehicles for the month. Actual mileage logs for September were higher than the total calculated by 61 total miles. Actual mileage logs for July were higher than the allocation calculation by 114 total miles. Due to these errors, WIC expenses allocated according to these amounts were overstated by $2, and estimated total allocation errors are $57. An invoice that included the purchase of items for multiple grant programs did not allocate the shipping costs accordingly - the full $5 cost was charged to the ELC grant. The estimated total allocation errors are $9. Recommendation We recommend that the County review its procedures and implement controls to ensure that expenditures are properly calculated and booked. Action Taken Regarding the $5 shipping that was inadvertently all charged to the ELC grant on an invoice for which there were items that were for the ELC grant, but also other grants, we are reminding all accounting staff to be additionally diligent about the shipping allocations. We believe this was an isolated instance and because it was so small in dollar amount, it was not caught as we reviewed expenditures. Regarding Payroll errors, we do have an ongoing process employed each time period for employees to track their hours per grant program and for non-grant purposes, which has a robust review by supervisors before their hours are entered into the payroll system to produce that time period's paycheck. Grant managers and the department's accountant, in preparing monthly or quarterly financial reports for granting agencies, are also performing reasonableness reviews as well as spot checks of payroll charged to the various grants. In the case of the ELC grant sample in which ELC payroll was understated by $13, with an estimated total error of $25, our ongoing processes did not find this error since it was roughly one hour mischarged over the course of the year. For the WIC payroll sample errors of $144 which were mis-reported to the various categories within WIC, this again was of a small enough dollar amount and had an offsetting effect within the components of the WIC grant (net zero dollar impact), that it was not caught in our regular review work. Our WIC program manager performs a detailed internal audit four times per year, or one full month every quarter, of payroll charges to the WIC program, and submits that to the funding agency. We will continue efforts to be as accurate as possible in all clerical processes surrounding payroll charges, and we will remind employees and supervisors of the importance of the accuracy of the detail logs and of compiling the results of the time logs to be entered into the pay system. Regarding the mileage calculation errors that impacted the WIC grants, the dollar impact was estimated to be extremely low (from $2 to an estimated $57). The small dollar impact of the clerical errors led to our review processes not finding the error. Beginning in June of 2023, we have implemented a more robust use of Excel in calculating the total number of miles each month for each of our grant programs. In addition, we have created a new odometer tracking sheet that is kept in the vehicle and completed by any driver, and we believe that this new report will improve readability, simplify the process, and will remove any math component previously required of the drivers. We have also created a new fleet tracking sheet for mileage, which has an individual page for mileage tracking over time. Lastly, we are working on a process for all mileage logs and additional paperwork to be documented and scanned in the same way and in the same order, in order to ensure that all logs are properly included and documented. We believe this will ensure uniformity of including all departmental vehicle usage in a standardized way in charging allowable mileage to the various grants.