Finding 2023-001: Allowable costs – significant deficiency in internal controls over compliance and compliance finding. Management Response CCGD was issued monitoring findings by HHSC for the monitoring period October 2021 (FY 21) -November 2022 (FY 22) in April 2023. As a result of that finding, CC...
Finding 2023-001: Allowable costs – significant deficiency in internal controls over compliance and compliance finding. Management Response CCGD was issued monitoring findings by HHSC for the monitoring period October 2021 (FY 21) -November 2022 (FY 22) in April 2023. As a result of that finding, CCGD received a finding in its 2022 audit. Because of the timing of the findings, as noted in the 2023 audit report, there was not time to resolve the issue before 2023. Therefore, even though the below described plan was implemented in 2023, immediately upon receipt of the initial finding, CCGD was still issued a finding in its FY2023 audit. The notification was received in the 7th month of fiscal year 2023, the following plan has been implemented.
o
Timesheet and GL mismatch
i.
Management Response:
1.
Perform an audit of existing setup of HRIS-Paycom system to determinecause of mismatch
2.
If needed, reimplement Paycom with required setup or change vendors
3.
All departments along with respective service categories werereestablished in Paycom to only display employees applicable servicecategories based their respective grants.
4.
Conduct quarterly audits of timesheets and GL to ensure there are nomismatches.
5.
Time study was performed on quarterly basis to ensure individualperformance complies with funders mandate.
ii.
Progress Update - GL and Timesheet Mismatch:
1.
Audit of existing setup to review the following:
a.
Department(s) - revised department names/descriptions
i.
Made changes to all applicable employees’ setup.
b.
Home Allocation(s) – revised home allocation(s)i.
Revised/edited the default home allocation description
ii.
Assigned correct default home allocation to employees
c.
Service Categories
i.
Revised/edited service categories assigned to each department
2.
Observations:
a.
Following Paycom updates, CCGD experienced technical challenges due to software glitches which continued to result in timesheet and GL mismatches. CCGD is continuing to work with Paycom to identify and eliminate the problem.
b.
CCGD subsequently sought assistance from Paycom in the troubleshooting process.
3.
Departmental training of timekeeping process
a.
Personalized standard operating procedures used
b.
Real-time examples/instruction provided to staff in training session(s)
4.
Post-training audits conducted to include:
a.
Timecard/sheet review
b.
GL review and comparison of timecards and sheetsiii.
Future Steps and Anticipated Timeline:
1.
Continuation of post-training audits to include:
a.
Timecard/sheet review
b.
GL review and comparison of timecards and sheets
2.
With an anticipated deadline completion date of December 31, 2023, for adherence of full compliance, CCGD effectively implemented system updates prior to this deadline to ensure payroll processing is now based on the actual time and effort performed.
iv.
Progress Update – Performance Activity Report
1.
To provide further back up to time and effort, an additional option in Paycom was enabled for staff to enter notes on day-to-day activity.
2.
Departmental training on this goal was performed and completed as of March 31, 2024.
3.
Continuation of post-training audits to include:
a.
Timecard/sheet review
b.
GL review and comparison of timecards and sheets
v.
Post implementation plan and observation:
CCGD is fully committed to complying with funders and audit standards. Furthermore, CCGD will continue to monitor and identify any potential errors in its payroll reporting to bring a timely solution if required. Furthermore, minor reporting errors occur in payroll GL reports on a random basis. The errors appear to be technical, and as such, we are currently working with Paycom to resolve this issue.
Additionally, CCGD will continue to perform time study to ensure that all salary expenses and allocations are adhered to the respective program budget. Parties Responsible: Chief Executive Officer, Chief Financial Officer, and Director - Human Resources