Finding Text
Type of Finding: (C) Finding that Does Not Rise to the Level of a Significant Deficiency (Other Matters) Involving Internal Control Over Financial Reporting Condition During our review of personnel documentation, we selected 5 employee personnel files for testing from a population of 8 employees for the year ended December 31, 2022. For 5 of 5 employees selected, management was unable to provide a completed Form I-9 (or evidence of compliant electronic completion/retention) upon request. NEW SPACE NEXUS SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended December 31, 2022 37 Criteria Federal regulations require employers to complete and retain Form I-9 for each individual hired for employment in the United States and to make Forms I-9 available for inspection. Forms I-9 must generally be retained for three years after the date of hire or one year after employment is terminated, whichever is later. Effect Not properly completing and retaining Form I-9s may result in noncompliance with federal employment eligibility requirements and could expose the organization to potential fines, penalties, or sanctions. Additionally, inadequate personnel records weaken internal controls over human resources and payroll. Cause Staff responsible for onboarding were not trained on I-9 requirements, and management did not implement compensating review controls. Recommendation Management should implement a documented I-9 compliance process that requires Form I-9 completion within required timeframes for all new hires. Management should also review current personnel records to identify missing I-9s and remediate where permissible, retaining documentation of remediation actions. Views of Responsible Officials and Planned Corrective Action Management concurs and will implement a documented employee onboarding process requiring timely completion and retention of Form I-9 for all new hires. Existing personnel files will be reviewed and missing I-9s will be remediated where permissible. Management will retain evidence of completion and periodic compliance review. Owned by: Financial Analyst By: January 31, 2023.