Finding 16014 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2022-12-28
Audit: 19582
Organization: Youth Network Council (IL)
Auditor: Porte Brown LLC

AI Summary

  • Core Issue: Cost allocations for salaries are not consistently backed by employee timesheets, leading to discrepancies in expense reporting.
  • Impacted Requirements: Internal controls must ensure accurate allocation of employee-related costs based on actual time spent.
  • Recommended Follow-Up: Implement a regular review process to reconcile timecards with general ledger allocations.

Finding Text

Criteria: Internal controls should be in place that provide reasonable assurance that cost allocations of staff time accurately represent the correct allocation of employee-related costs based on the time spent by applicable employees. Condition : Cost allocations for salaries, including federal award programs, are not consistently supported by employee timesheets or other similar documentation. Effect : The amounts allocated in the general ledger did not agree to the amounts allocated by the timecard documentation resulting in improper allocation of expenses to grants. Cause : There are no procedures in place for adjust the time allocation and aligning them with the time sheet on a regular basis and when there are a change in employees. Recommendation : We recommend that the Organization implement a control process to review time cards against the time allocation adjustment entry on a regular basis. Views of Responsible Officials and Planned Corrective Actions : The Organization recognizes this finding and agrees with the recommendation. Going forward the Organization will implement a control to reconcile timecard allocations with general ledger allocations.

Corrective Action Plan

Name of Contact Person: Andrea Durbin, Executive Director Corrective Action: The Organization recognizes this finding and agrees with the recommendation. Going forward the Organization will implement a control to reconcile timecard allocations with general ledger allocations. Proposed Completion Date: January 2023

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 16015 2022-002
    Significant Deficiency
  • 592456 2022-001
    Significant Deficiency
  • 592457 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.087 Enhance Safety of Children Affected by Substance Abuse $1.27M
16.540 Juvenile Justice and Delinquency Prevention_allocation to States $262,106