Finding 1176978 (2025-006)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-03-09
Audit: 390817
Organization: Domestic Violence Crisis Center (ND)
Auditor: BRADY MARTZ

AI Summary

  • Core Issue: The Center lacks proper documentation for the review and approval of invoices and employee time distributions, which is essential for compliance with internal controls.
  • Impacted Requirements: This finding affects the Center's adherence to the compliance supplement, risking improper coding of expenses to the grant.
  • Recommended Follow-Up: Ensure all invoices and employee time distributions are reviewed and documented by management and supervisors using desktop computers to minimize approval glitches.

Finding Text

Criteria: An appropriate system of internal controls requires that the Center comply with the requirements of the compliance supplement and request reimbursement only for allowable activities and costs. Condition: During our single audit nonpayroll transaction testing of AL 93.671 Family Violence Prevention and Services/Domestic Violence Shelter and Supportive Services, it was noted that there was no documentation of review and approval on invoices paid by the Center. We selected seven invoices for testing, and two invoices had no documentation of review and approval. During our single audit payroll transaction testing of AL 93.671 Family Violence Prevention and Services/Domestic Violence Shelter and Supportive Services, it was noted that there was no documentation of review and approval on employee time distributions by the employee’s supervisor. We selected 33 payrolls for testing, and three payrolls had employee time distributions with no documentation of review and approval by the employee’s supervisor. Cause: For nonpayroll transactions, the Center did not document its review of invoices but rather reviewed invoices when signing checks. This is a repeat finding. In the prior year, the Corrective Action Plan stated that the Center implemented an internal control in January 2025 to ensure all invoices are reviewed and approved by management, and both instances where review was not documented were dated prior to January 2025. For payroll transactions, it was noted by management that when supervisors sign employee time distributions on mobile devices, there are glitches that impact saving signatures. However, we viewed timesheets that were kept for payroll reporting purposes and noted that they were reviewed and approved by supervisors. These payroll reporting timesheets do not break out the grant expense allocations. Questioned Costs: There were no questioned costs associated with this finding. Effect: Expenses could be improperly coded to the grant. Recommendation: We recommend that all invoices paid by the Center be approved and documented as reviewed by management. We also recommend that all employee time distributions be approved and documented as reviewed by the employee’s supervisor through a desktop computer and avoid mobile approvals to reduce the number of glitches in saving. Views of Responsible Officials and Planned Corrective Actions: We agree with this finding. See corrective action plan item 2025-006. Indication of repeat finding: This is a repeat finding. See finding 2024-006.

Corrective Action Plan

Contact Person Aaron Moss, Board President Corrective Action Plan The Center’s Office Manager will initial all invoices to signal that they have been reviewed and approved for payment. The Center’s employee supervisors will sign all of their subordinates’ time distributions to signal that they have been reviewed and approved for grant allocation. Completion Date The Center implemented an internal control in January 2025 to ensure all invoices are reviewed and approved by management. The Center will also ask employee supervisors to sign their subordinates’ time distributions through a desktop computer and avoid mobile approvals to reduce the number of glitches in saving.

Categories

Allowable Costs / Cost Principles Cash Management Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1176976 2025-004
    Material Weakness Repeat
  • 1176977 2025-005
    Material Weakness Repeat
  • 1176979 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $259,760
16.575 CRIME VICTIM ASSISTANCE $199,999
16.017 SEXUAL ASSAULT SERVICES FORMULA PROGRAM $102,827
93.497 FAMILY VIOLENCE PREVENTION AND SERVICES/ SEXUAL ASSAULT/RAPE CRISIS SERVICES AND SUPPORTS $99,487
16.589 RURAL DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ASSISTANCE PROGRAM $69,860
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $53,928
93.591 FAMILY VIOLENCE PREVENTION AND SERVICES/STATE DOMESTIC VIOLENCE COALITIONS $25,994
16.738 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT PROGRAM $25,743
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $15,579
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $6,141