FAC Explorer

Finding 1153025 (2024-002)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-09-15
Audit: 366299
Organization: Poverello Center, INC (MT)
Auditor: Carver Florek & James Cpa's

AI Summary

  • Core Issue: A management member self-approved payroll expenditures, violating federal grant approval requirements.
  • Impacted Requirements: Federal agreements mandate a proper approval process for expenditures to prevent unauthorized activities.
  • Recommended Follow-Up: Implement a plan to eliminate self-approval of payroll transactions to ensure compliance.

Finding Text

2024-002 Approval of Payroll – Significant Deficiency Criteria: Federal grant agreements and contracts require entities to have an approval process in place for expenditure of federal awards to ensure that activities are allowed under federal agreements. Condition: For 1 of the 40 transactions tested we found that the Organization had allowed for a member of management to self-approve payroll expenditure. Cause: Undetermined. Effects: The Organization could allow payroll expenditures that are not due or allowed as the self-review would allow for activities to pass through. Recommendation: We recommend that management implements a comprehensive plan to ensure payroll transactions are not self-approved.

Corrective Action Plan

Recommendation: We recommend that management implements a comprehensive plan to ensure payroll transactions are not approved by the individual for which the payroll is for. Views of Responsible Officials and Planned corrective Actions: We agree with the auditors' findings and are taking the following corrective actions to address the issue. We have implemented a comprehensive plan to ensure that all timecards are reviewed and approved by someone other than the individual sub:nitting the timecard. Additionally, the plan includes a formal policy outlining procedures to ensure continued compliance during staff transitions, including the reassignment of timecard approval responsibilities when personnel changes occur.

Categories

Significant Deficiency

Other Findings in this Audit

  • 1153024 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $417,172
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $127,918
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $33,375
97.024 Emergency Food and Shelter National Board Program $5,000