Finding 1160447 (2024-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
$1
Year
2024
Accepted
2025-10-15
Audit: 370864
Organization: Madonna Center, Inc. (TX)
Auditor: Jms CPA PLLC

AI Summary

  • Core Issue: A non-exempt employee was underpaid for overtime, violating the Fair Labor Standards Act.
  • Impacted Requirements: The Center failed to pay the required rate of one and a half times the regular rate for hours worked over 40 in a week.
  • Recommended Follow-Up: Reimburse the employee $2,587 and implement procedures to ensure compliance with overtime pay regulations.

Finding Text

Type of Finding: Significant Internal Control over Federal Laws and Regulations Compliance Requirement: Fair Labor Standards Act per 29 U.S. Code §207(a)(2) Criteria: The Center must pay non-exempt employees that work more than 40 hours in one work week a rate no less than one and half times their current rate, unless otherwise exempt. Condition: It was noted that a non-exempt employee was underpaid for hours worked during the fiscal year. This employee was paid their regular rate for all hours worked over 40 hours in one work week, this led to an underpayment of wages in the amount of $2,587. Cause: No procedures are in place to identify that non-exempt employees are being paid rates for hours worked more than 40 hours in a work week at a rate no less than one and a half times their current rate. Effect: Paying incorrect rates for hours worked over 40 hours in a work week resulted in noncompliance with the Fair Labor Standards Act. Recommendation: We recommend the Center to reimburse the employee for amounts due for all hours worked more than 40 hours in a work week during the fiscal year at a rate of no less than one and a half times their current rate. We recommend the Center establish and implement procedures to review and achieve compliance with the Fair Labor Standards Act and ensure ongoing adherence to its requirements. Views of Responsible Officials: Management agrees and will reimburse the employee for the amounts due for hours worked more than 40 hours in a work week during the fiscal year. Management will develop review procedures to respond to this finding.

Corrective Action Plan

Management agrees and will reimburse the employee for the amounts due for hours worked more than 40 hours in a work week during the fiscal year. Management will develop review procedures to respond to this finding.

Categories

Questioned Costs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1160444 2024-004
    Material Weakness Repeat
  • 1160445 2024-001
    Material Weakness Repeat
  • 1160446 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $270,088
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $195,109
10.558 Child and Adult Care Food Program $169,803
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $99,359
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $90,000
10.565 Commodity Supplemental Food Program $39,446
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $13,394