FAC Explorer

Finding 2715 (2021-002)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2021
Accepted
2023-11-29
Audit: 4622
Organization: Lasa (WA)
Auditor: Arleen T Ibay CPA

AI Summary

  • Core Issue: Missing supervisory approval on timesheets and payroll raises concerns about compliance with federal funding requirements.
  • Impacted Requirements: This affects the allowable costs under Emergency Rental Assistance, risking improper charges to federal awards.
  • Recommended Follow-up: Implement procedures to ensure all payroll documentation includes written approval from senior management.

Finding Text

Internal control over compliance - Allowable Cost/Cost Principles, Emergency Rental Assistance, CFDA No. 21.023, Grant no. CW2227387 #9 and SC-108720; Grant periods March 22, 2021 to December 31, 2021 and October 1, 2021 to June 30, 2022 Material Weakness. Finding No 2021-001 is applicable to the major program. As discussed in Finding 2021-001, timesheets and payroll were missing supervisory approval. Because of the failure to document approval on payroll, wages may be charged to the federal awards without support, or without approval of management. Procedures should require adequate documentation of payroll including the written approval of senior management.

Corrective Action Plan

Finding 2021-001 is applicable to the major program. We will require supervisors' review of time reported for each funding source and require written approval on timesheets before processing of payroll. We will require written approval of the payroll before direct deposits are processed. We anticipate the completion date of the corrective action plan by December 31, 2023. The Executive Director, Jason Scales will be responsbile for ensuring that the corrective actions take place as described. If you have any questions or require additional information, please feel free to contact him at 253-581-8689 or jason@lasawa.org.

Categories

Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 579157 2021-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $346,316
14.239 Home Investment Partnerships Program $286,570
14.218 Community Development Block Grants/entitlement Grants $45,861
14.231 Emergency Solutions Grant Program $25,489
97.024 Emergency Food and Shelter National Board Program $15,346
14.881 Moving to Work Demonstration Program $4,250