Finding Text
Program
ALN 16.575 - Crime Victim Assistance
Criteria
Establishment and maintenance of internal controls over the financial reporting process.
Condition
Our testing identified an instance of an employee being paid an additional three hours of overtime during the pay period selected than was worked. This resulted in the employee being paid approximately an additional $59, which was charged to the federal program.
Questioned costs
The error resulted in $59 of questioned costs.
Context
The finding is the result of audit procedures performed and observation and inquiry with Organization management.
Effect
The error was not detected and corrected and resulted in the federal program being overcharged $59.
Cause
The root cause is an inadequate internal control environment and inadequate monitoring of financial processes.
Recommendation
We recommend the Organization revisit internal controls over payroll processing to ensure adequate monitoring is in place to detect and correct payroll processing errors.
Views of the Responsible Officials and Planned Corrective Action
Future internal approval of all timesheets will include first approval by the immediate supervisor, reviewing total hours worked per week, grants billed, and total hours worked. There will be a second approval by an outside financial management firm when they process the payroll to prevent errors in overpayments.