Finding 1045 (2023-001)

Material Weakness

Requirement

Questioned Costs

Year

2023

Accepted

2023-11-01

Audit: 2006

Organization: Arts Impact (WA)

Auditor: Branch Richards & CO P S

AI Summary

Answer: Arts Impact lacks a formal timekeeping system for tracking actual hours worked.
Trend: This issue may lead to inaccuracies in payroll and expense reporting.
List: Recommend implementing a timekeeping system to ensure accurate tracking of hours and support for future invoices.

Finding Text

Arts Impact provides professional learning and direct instruction in arts and culture for youth and teachers during the Fiscal Year 2022-2023. The organization submitted invoice to OSPI for deliverables completed. We audited the payroll and non-payroll expenses allocated to programs to determined invoices are accurately supported. The auditing work determined there was no formal timekeeping system to track the actual worked hours.

Corrective Action Plan

Arts Impact has created a new timesheet with columns for each class of xpense (Programs: Voices from the Field, Creative Impact, or Fee for Service, G&A, Fundraising). Employees are tracking their hours spent on work in each class daily and recording it on the new timesheet every pay period. Supervisors check their reporting staff’s hours against their knowledge of the employee’s work before signing their timesheets (on the 15th and last day of each month). The bookkeeper will upload each employee’s hours by class into QuickBooks online. Employees received the new timesheet templates October 23, 2023. These new timesheets will be used going forward from now on. Employees will also retroactively record their hours by class from the start of FY 23-24 (July 1, 2023) through October 31, 2023 to complete the transition.

Other Findings in this Audit

577487 2023-001

Material Weakness

Programs in Audit

ALN	Program Name	Expenditures
84.011	Migrant Education_state Grant Program	$927,903
45.025	Promotion of the Arts_partnership Agreements	$5,500