Core Issue: Incomplete implementation of the corrective action plan from a previous finding, affecting expense documentation and allocation.
Impacted Requirements: All allocable time must include detailed descriptions of duties performed to strengthen controls and prevent misstatements.
Recommended Follow-Up: Develop a clear policy for time reporting and ensure job duties are documented for each position to improve compliance.
Finding Text
2022-003 SIGNIFICANT DEFICIENCY Finding resolution status: In-Process Information on universe: Substantive testing Sample size: Expenses selected for substantive testing based on analytics Identification of repeat finding : Repeat finding Condition: Although improvements were made in the documentation and allocation of expenses not all of the corrective action plan from finding 2021-004 has been implemented at year end. Criteria: All allocable time should have sufficient detail of duties performed. Effect: Controls around allocations could be stronger which could result in misstatements. Context: Auditor selected accounts for testing due to the balances appearing unreasonable in comparison to the budget as well as prior year findings. It was noted that improvements were made after the prior audit was issued. Cause: Lack of policy surrounding time reporting. Recommendation: To document job duties for each position and implement a policy to ensure all time sheets detail out the duties performed. Reporting views of responsible officials: See Corrective Action Plan