Finding Text
2022-004 Internal Control Design and OversightCriteria: Effectively designed and executed controls should be present to ensure proper recordkeeping andreporting.Condition: Internal processes were not followed in the year under audit:? In two of six selected rental assistance payments, the staff or program manager signatures werenot present on the Housing Expenses Request form, further in a third instance the programmanager signed as both the staff and program manager. In each of these three instances theDirector also signed off.? In one of the three employees selected for payroll testing, OVS functional time sheets supportingthe voucher did not agree to the claim submitted or the payroll distribution of hours for the givenperiod.Cause: In certain circumstances, the client represents that internal control processes were not able to befollowed due to personnel shortages. Further review of functional time sheets should be implemented.Effect: Benefits were paid that did not always have control processes and inaccurate functional time sheetsmay be used to support expenditures reported within grant vouchers.Recommendation: Controls should be effectively designed and executed to ensure adequate oversight andreporting take place.View of Responsible Official: The Executive Director and Senior Director of Finance will continue to includeOVS on its internal audit plan for 2023 and based on the result of internal audits, provide retraining asneeded. The existing policies and procedures will be reviewed and revised to reflect current best businesspractices to ensure compliance reporting, billing, et al.