Finding 1218116 (2025-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-06-22
Audit: 404309
Organization: Dupage Senior Citizens Council (IL)
Auditor: SIKICH CPA LLC

AI Summary

  • Core Issue: 14 out of 40 payroll transactions lacked supervisor approval for part-time employees' timecards, indicating a significant compliance weakness.
  • Impacted Requirements: This finding violates 2 CFR 200.430(g)(I), which mandates accurate records for federal awards based on proper internal controls.
  • Recommended Follow-Up: DuPage Senior Citizens Council should enhance policies to ensure all hourly employees' timecards are reviewed and approved by knowledgeable supervisors.

Finding Text

2025-001 Aging Cluster-Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers- Assistance Listing No. 93.044. Special Programs for the Aging, Title III, Part C, Nutrition Services- Assistance Listing No. 93.045. Nutrition Services Incentive Program- Assistance Listing No. 93.053 Criteria: 2 CFR 200.430(g)(I) states, "Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated…” Condition: Out of forty payroll transactions tested, we noted 14 instances where part-time employees did not have their timecard approved by their supervisor. We consider this condition to be a material weakness relating to the Allowable Costs/Cost Principles compliance requirement. Statistical sampling was not used in making sample selections. Cause and effect: Without proper review of hours worked, there may be portions of pay charged to a federal award where the employee did not work or did not work on the program for the related federal award. Questioned Costs: N/A Recommendation: We recommend that DuPage Senior Citizens Council reviews their policies and procedures to ensure all hourly employees have their timecards reviewed and approved by individuals who work closely with the individual and would be aware of the hours worked. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Corrective Action Plan

2025-001 Aging Cluster-Special Programs for the Aging, Title III, Part B, Grants for Supportive Services and Senior Centers- Assistance Listing No. 93.044. Special Programs for the Aging, Title III, Part C, Nutrition Services- Assistance Listing No. 93.045. Nutrition Services Incentive Program- Assistance Listing No. 93.053 Condition Found Out of forty payroll transactions tested, we noted 14 instances where part-time employees did not have their timecard approved by their supervisor. We consider this condition to be a material weakness relating to the Allowable Costs/Cost Principles compliance requirement. Statistical sampling was not used in making sample selections. Corrective Action Plan DuPage Senior Citizens Council will strengthen controls over payroll timecard approval to ensure all part time employee timecards are reviewed and approved by an appropriate supervisor prior to payroll processing. Management will formalize and document supervisory approval requirements within written payroll procedures. Payroll will not be processed unless all required timecards reflect documented supervisory review and approval. Oversight of compliance with these procedures will be supported through periodic review by the Executive Director and the outsourced accounting firm through documented policy and process reviews. Responsible Person for Corrective Action Plan Executive Director, with support from the Payroll Clerk Implementation Date of Corrective Action Plan DSCC began implementing this process in May 2025. The corrective action was effective immediately at that time and is considered fully implemented.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1218113 2025-001
    Material Weakness Repeat
  • 1218114 2025-001
    Material Weakness Repeat
  • 1218115 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.053 NUTRITION SERVICES INCENTIVE PROGRAM $290,568
93.045 SPECIAL PROGRAMS FOR THE AGING_TITLE III, PART C_NUTRITION SERVICES $100,000
93.044 SPECIAL PROGRAMS FOR THE AGING_TITLE III, PART B_GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $22,919