Finding 1148381 (2024-001)

Finding Number 2024-001: Represents a significant deficiency in internal control over compliance. Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control Over Compliance Description: Payroll Expenditures – Approval of Wage Confirmation Sheets Major Program: AL#93.569 - Community Service Block Grant – Award numbers CFS-24-7007 and CFS-25-7007 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles Condition: Out of a sample of fourteen (14) payroll transactions (representing eight (8) individual employees), there were two (2) selections that did not have signed wage confirmation sheets. Criteria: 2 CFR 200.430(i) states that “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated”. Wage confirmation sheets, which document the employees rate of pay, must be signed indicating approval. Cause: Due to inadequate staffing, the Organization does not have the proper review process in place to ensure that the wage confirmation sheets are reviewed and approved prior to payroll being processed. Effect: Without proper review and approval of the wage confirmation sheets, it is possible that grants could be charged incorrectly, resulting in misstated financial statements. Recommendation: We recommend the Organization implement systems and procedures to ensure all wage confirmation sheets have been reviewed and approved, to ensure grants are charged for the correct amount of payroll expenses. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.