Finding Text
2024-001 – ALN – 23.002 - Appalachian Area Development – Activities allowed/Unallowed and Allowable costs/Cost principles: Lack of control for approval of timesheets (New Finding) Criteria : Payroll disbursements should be approved and reviewed as per the internal controls in place in the organization. Condition : Payroll disbursements made from November 2024 to December 2024 did not have approval on timesheets and the disbursements were made without proper approval. Cause : Executive director parted ways with the Organization in November 2024 and there was no formal control policy for the alternate approval process. Effect : No proper approval may result in the expenditures of federal program not being properly monitored, thus resulting in potential noncompliance with program requirements. Recommendation : We recommend management implement an additional/alternate level of review by someone with proper knowledge to oversee the disbursements made under the program. Management’s Response : AOMC will retrain all staff and supervisors on the required payroll approval process. All timesheets must be reviewed and approved by the employee’s supervisor before being submitted for payroll processing. AOMC has also worked with the board to ensure that if no Executive Director is in place, a board member will approve timesheets or designate an AOMC employee with the authority to approve time.