Finding 1229038 (2024-012)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2026-09-08
Audit: 410498
Organization: City of Emporia (VA)

AI Summary

  • Core Issue: The City is not reviewing vendor disbursements or employee timesheets before making payments.
  • Impacted Requirements: There should be a process for management to approve all expenditures prior to payment.
  • Recommended Follow-Up: Ensure the City adheres to its expense approval process for vendors and payroll to enhance oversight.

Finding Text

2024-012 COVID-19 - Coronavirus State and Local Fiscal Recovery Fund – Assistance Listing #21.027, Activities Allowed/Allowable Costs (Material Weakness) Condition : The City is not reviewing the disbursements paid to one of their vendors nor payroll timesheets of some of their employees prior to making payment to them. Criteria : Management should have processes and procedures in place that requires approval of expenditures prior to payment. Cause : At times the vendor was approving payments and their employee timesheets, however the City was not approving payment prior to reimbursement to the vendor and payment to employees. Effect : There is a lack of control due to a lack of review. Perspective Information : We detected this through sampling in one out of seven disbursements tested and in six out of six payroll timesheets tested. City of Emporia, Virginia Schedule of Findings and Questioned Costs June 30, 2024 14 Recommendation : We recommend that the City follow their expense approval process for all vendors and approve personnel timesheets for payroll expenditures to provide oversight. View of Responsible Officials : See Corrective Action Plan.

Corrective Action Plan

The City has strengthened its review and approval procedures for federally funded expenditures to ensure appropriate management oversight prior to payment. Vendor invoices and reimbursement requests are now reviewed and approved by City management before payment is processed, and employee timesheets charged to federal awards require supervisory approval prior to payroll processing. These procedures reinforce compliance with the City's expenditure approval process and provide additional oversight to ensure allowable costs are properly reviewed and approved before reimbursement or payment. These procedures have been implemented and will be followed for all federally funded expenditures on an ongoing basis.

Categories

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

Other Findings in this Audit

  • 1229027 2024-010
    Material Weakness Repeat
  • 1229028 2024-010
    Material Weakness Repeat
  • 1229029 2024-010
    Material Weakness Repeat
  • 1229030 2024-010
    Material Weakness Repeat
  • 1229031 2024-011
    Material Weakness Repeat
  • 1229032 2024-011
    Material Weakness Repeat
  • 1229033 2024-011
    Material Weakness Repeat
  • 1229034 2024-011
    Material Weakness Repeat
  • 1229035 2024-012
    Material Weakness Repeat
  • 1229036 2024-012
    Material Weakness Repeat
  • 1229037 2024-012
    Material Weakness Repeat
  • 1229039 2024-013
    Material Weakness Repeat
  • 1229040 2024-013
    Material Weakness Repeat
  • 1229041 2024-013
    Material Weakness Repeat
  • 1229042 2024-013
    Material Weakness Repeat
  • 1229043 2024-014
    Material Weakness Repeat
  • 1229044 2024-014
    Material Weakness Repeat
  • 1229045 2024-014
    Material Weakness Repeat
  • 1229046 2024-014
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
16.574 Victim Services Grant Program $235,393
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $155,428
16.575 CRIME VICTIM ASSISTANCE $132,109
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $62,341
93.497 FAMILY VIOLENCE PREVENTION AND SERVICES/ SEXUAL ASSAULT/RAPE CRISIS SERVICES AND SUPPORTS $14,722
97.042 EMERGENCY MANAGEMENT PERFORMANCE GRANTS $10,285
16.017 SEXUAL ASSAULT SERVICES FORMULA PROGRAM $8,425