FAC Explorer

Finding 1221621 (2025-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-06-30
Audit: 405857
Organization: Hope Federal Credit Union (MS)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal control related to payroll, with expenses charged to the grant lacking proper time documentation.
  • Impacted Requirements: The absence of effective review processes has led to questioned costs of $8,911 for payroll expenses billed to the grant.
  • Recommended Follow-Up: Implement a robust review system for payroll to ensure only actual hours worked are charged to the grant, with management agreeing to the corrective action plan.

Finding Text

Federal Agency: U.S. Environmental Protection Agency Federal Program Name: Solar for All Assistance Listing Number: 66.959 Federal Award Identification Number: 84091401, 84091501 Pass-Through Agency: N/A Pass-Through Numbers: N/A Award Period: 05/01/2024 – 08/07/2025 Type of Finding: Significant Deficiency in Internal Control Criteria: Lack of effective review over payroll over timekeeping. Condition and Context: Payroll expenses were charged to the grant program but were not supported with time actually worked for the program. Questioned Costs: $8,911. Cause: Lack of key control over time allocated to the grant review process for one employee. Effect: Overstatement of payroll expenses billed to the grant in 2025. Repeat Finding: No Recommendation: The Organization should establish effective review over payroll to ensure that only actual employee's time is billed the grant. View of Responsible Officials: Management is in agreement. Management Responses and Corrective Action Plan: See attached corrective action plan.

Corrective Action Plan

HEC will implement the following actions to correct the error and prevent recurrence: 1. Repayment of Overclaimed Funds HEC will return the full amount of overclaimed funds to the respective grant programs: - $2,986.76 to SFA AR - $5,687.74 to SFA MS 2. Payroll System Controls Enhancement HEC’s Human Assets department will coordinate with its payroll processing vendor (UKG) to: - Review payroll configuration settings related to bonus payments. - Implement controls to ensure bonus compensation is excluded from grant-related labor distributions. 3. Monitoring and Oversight Reinforcement The VP of Government Grant Compliance will reinforce internal review procedures by: - Providing targeted guidance to the Investor Relations Grant Compliance and Fiscal teams on identifying anomalies in Wage and Hour Reports, including unusual or inflated hourly rates

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1221620 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.033 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND EQUITABLE RECOVERY PROGRAM (CDFI ERP) $1.18M
66.959 GREENHOUSE GAS REDUCTION FUND: SOLAR FOR ALL $726,020
99.U01 EXPANDABLE GRANTS $521,000
90.200 Delta Regional Development $432,287
84.354 CREDIT ENHANCEMENT FOR CHARTER SCHOOL FACILITIES $141,380
14.521 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $120,087
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $64,988
10.872 Delta Healthy Food Financing Initiative $34,754
10.433 Rural Housing Preservation Grant $10,040
47.084 NSF TECHNOLOGY, INNOVATION, AND PARTNERSHIPS $8,658
10.890 RURAL DEVELOPMENT COOPERATIVE AGREEMENT PROGRAM $2,261