Finding 22306 (2022-003)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-06-07

AI Summary

  • Core Issue: Some payroll records were missing required signatures, affecting their validity.
  • Impacted Requirements: Controls for proper recordkeeping and timely approvals were not consistently followed.
  • Recommended Follow-Up: Ensure that all personnel are reminded of the importance of adhering to established procedures for payroll approvals.

Finding Text

2022-003 Internal Control Design and Oversight Condition: Two of eight selected payroll charges selected for testing lacked one required signature, either of the employee or a supervisor, on the Personnel Activity Report. In one additional instance, the signatures did not include the required date as evidence of timeliness of preparation or approval. Criteria: Effectively designed and executed controls should be present to ensure proper recordkeeping and reporting. Cause: In certain circumstances, documented processes were not followed. Effect: Payroll and benefits were charged that were not properly reviewed/approved or the approval may not have taken place timely. Recommendation: The auditor recommends that controls be executed to ensure adequate and timely oversight take place. View of Responsible Official: Management agrees and has implemented processes to review Personnel Activity Reports on a timely basis, this process will be reinforced and personnel reminded of the importance of following current procedures.

Corrective Action Plan

Cayuga Counseling Services, Inc. has a process for the review and processing of payroll. Each payroll the included form is utilized to ensure all checks have been completed prior to processing payroll. This is utilized by Lynn Smith to verify all information is correct before it is processed. The responsibilities of preparing/processing payroll is as follows:1. all staff are responsible for preparing and signing their PARS. 2. Management is required to turn their assigned supervisee's approved PARS with their signature and date attesting they have reviewed them to the accounting assistant by noon on mondays on payroll weeks. 3. The Accounting assistant reviews the PARS for accuracy ensuring they match what is in payentry and include the correct dates, all required signatures and dates. 4. once they are reviewed, they are provided to the senior accounting assistant who enters to allocation information into the payentry system. 5. prior to finalizing payroll, the executive administrative assistant reviews the PARS against payentry to make sure all information is accurate. 6. after payroll processes a journal entry is prepared by the executive administrative assistant. 7. the deputy director reviews the entry and books it in blackbaud

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 22304 2022-001
    Material Weakness Repeat
  • 22305 2022-002
    Material Weakness
  • 22307 2022-001
    Material Weakness Repeat
  • 22308 2022-002
    Material Weakness
  • 22309 2022-003
    Significant Deficiency Repeat
  • 22310 2022-001
    Material Weakness Repeat
  • 22311 2022-002
    Material Weakness
  • 22312 2022-003
    Significant Deficiency Repeat
  • 22313 2022-001
    Material Weakness Repeat
  • 22314 2022-002
    Material Weakness
  • 22315 2022-003
    Significant Deficiency Repeat
  • 598746 2022-001
    Material Weakness Repeat
  • 598747 2022-002
    Material Weakness
  • 598748 2022-003
    Significant Deficiency Repeat
  • 598749 2022-001
    Material Weakness Repeat
  • 598750 2022-002
    Material Weakness
  • 598751 2022-003
    Significant Deficiency Repeat
  • 598752 2022-001
    Material Weakness Repeat
  • 598753 2022-002
    Material Weakness
  • 598754 2022-003
    Significant Deficiency Repeat
  • 598755 2022-001
    Material Weakness Repeat
  • 598756 2022-002
    Material Weakness
  • 598757 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $240,068
93.558 Temporary Assistance for Needy Families $185,104
16.543 Missing Children's Assistance $129,777
16.812 Second Chance Act Reentry Initiative $101,666
93.958 Block Grants for Community Mental Health Services $74,791
16.582 Crime Victim Assistance/discretionary Grants $69,981
16.588 Violence Against Women Formula Grants $48,147
16.758 Improving the Investigation and Prosecution of Child Abuse and the Regional and Local Children's Advocacy Centers $20,000
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $7,272