Finding Text
Department of Homeland Security, State of Nebraska Office of Emergency Management Agency, 97.039, DR‐4420‐NE‐0017
Hazard Mitigation Grant Program
Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Period of Performance
Significant Deficiency in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition: There was one instance of an employee’s timesheet which did not have an
independent review performed.
Cause: The timesheet was reviewed and approved by the same employee who performed the work on the grant. The timesheet will get reviewed as a part of month end close, however, there is no documentation supporting a formally documented review or approval over payroll.
Effect: The District’s control procedures did not detect or correct the error.
Questioned Costs: No questioned costs over $25,000.
Context/Sampling: Nonstatistical sampling was used. Sample size of 15 transactions which accounted for $2,196,234 out of $2,216,216 of federal program expenditures of which $1,662,162 was submitted for reimbursement.
Repeat Finding form Prior Year: No
Recommendation: We recommend the District review the employee timesheet approval process to ensure that all timesheets are obtaining an independent review and approval.
Views of Responsible Officials: Management agrees with the finding.