FAC Explorer

Finding 1237680 (2025-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-09-28
Audit: 412620
Organization: Safe Haven Family Shelter, Inc. (TN)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: Lack of documentation for supervisory review and approval of employee timecards in the new payroll system.
  • Impacted Requirements: Federal regulations and internal policies mandate that payroll costs must be supported by proper documentation.
  • Recommended Follow-Up: Establish procedures to ensure timecard reviews are documented and retained, especially during system transitions.

Finding Text

Finding 2025-001: Payroll Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Continuum of Care Assistance Listing Numbers: 14.267 Identification Number and Year: FKT4QJJ4MKF5 2025 Award Period: 1/1/2025-12/31/2025 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: Federal regulations and the Organization’s internal policies require payroll costs charged to federal awards to be supported by documentation evidencing supervisory review and approval of employee timecards. Condition: During testing of payroll transactions charged to the federal program, we noted that documentation evidencing management’s review and approval of employee timecards was not available. This condition occurred because the Organization transitioned to a new payroll system during the period, and historical timecard review documentation was not retained or migrated to the new system. Questioned Costs: None Context: Payroll costs charged to the federal program were supported by payroll registers and employee compensation records; however, evidence of supervisory review of timecards could not be provided for the period tested. Cause: The Organization changed payroll systems during the year and did not maintain or retain documentation evidencing management’s review of employee timecards during the transition. Effect: Expenses could be charged to the grant that were not incurred and not be caught or corrected timely. Repeat Finding: No Recommendation: We recommend that management implement and maintain procedures to ensuredocumented review and approval of employee timecards, including retaining such documentation during system transitions, to support payroll costs charged to federal programs and ensure compliance with federal requirements.

Corrective Action Plan

Recommendation: We recommend that management implement and maintain procedures to ensure documented review and approval of employee timecards, payroll costs charged to federal programs and ensure compliance with federal requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: During the transition to a new payroll system, documentation evidencing management’s review and approval of employee timecards was not retained. Nashville Safe Haven Family Shelter, Inc will work with their payroll service provider to ensure that payroll records, including evidence of timecard review and approval, are appropriately retained and accessible, including during any future system transitions. Name(s) of the contact person(s) responsible for corrective action: Jennifer Reason, COO Planned completion date for corrective action plan: 8/1/2026

Categories

Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1237677 2025-001
    Material Weakness Repeat
  • 1237678 2025-001
    Material Weakness Repeat
  • 1237679 2025-001
    Material Weakness Repeat
  • 1237681 2025-002
    Material Weakness Repeat
  • 1237682 2025-002
    Material Weakness Repeat
  • 1237683 2025-002
    Material Weakness Repeat
  • 1237684 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.267 CONTINUUM OF CARE PROGRAM $197,989
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $44,722