FAC Explorer

Finding 31883 (2022-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2023-09-27
Audit: 36001
Organization: Benton Franklin Community Action Committee (WA)
Auditor: Christensen King

AI Summary

  • Core Issue: Salary reallocations lacked proper support from approved timesheets, leading to unsupported journal entries.
  • Impacted Requirements: BFCAC's policy on documenting salary allocations was not followed, resulting in unverified expenditures.
  • Recommended Follow-up: Ensure adherence to allocation methods, require supporting documentation for adjustments, and implement a review process for journal entries.

Finding Text

Department of Housing and Urban Development Department of Health and Human Services Material Weaknesses Condition: Multiple reallocations of salaries and related expenditures were not supported by underlying approved timesheets used to document the allocation basis for the allocation of salaries and related expenditures. Criteria: The reallocations were made via journal entries in which no additional supporting documentation was present to justify the reallocation of expenditures. Cause: Journal entries were used to reallocate salaries and related expenses without justification documentation and journal entries recorded were not reviewed or approved by someone other than the person authorized to record the journal entry. Effect: Because of the failure to follow BFCAC?s policy of allocating salaries and related expenditures based on time charged and documented, expenditures were reallocated with no justification or documentation to support the reallocation. Recommendation: BFCAC needs to consistently follow its allocation methodology regarding salaries and related expenditures which allocates these expenditures based on supporting approved timesheets for hours worked. If any adjustments are deemed necessary, approved documentation should be present to support the changes and the journal entries should be reviewed and approved by the approving program manager or executive director. Questioned Costs: Undeterminable

Corrective Action Plan

2022-01* Our Finance Director (FD) created a tracking form for Journal Entries which included back-up materials on September 27, 2022. FD started using the form to create a trail and continued through mid-January 2023, at that time the FD started using the form that the Executive Director (ED) created. There was a miss commination between the audit reviewer and the FD. Some of these transactions were signed off and some were not. Consistency with the signing was the major problem, but the FD did review with the ED/and or COO/IT during the billing process. Process has been implemented that when adjustments are deemed necessary, approved documentation will be present to support the changes and the journal entries will be reviewed and approved by the department director or executive director. *Responsible person: Judith Gidley, Executive Director

Categories

Questioned Costs Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 31884 2022-002
    Material Weakness
  • 31885 2022-003
    Material Weakness
  • 31886 2022-001
    Material Weakness Repeat
  • 31887 2022-002
    Material Weakness
  • 31888 2022-003
    Material Weakness
  • 31889 2022-001
    Material Weakness Repeat
  • 31890 2022-002
    Material Weakness
  • 31891 2022-001
    Material Weakness Repeat
  • 31892 2022-002
    Material Weakness
  • 608325 2022-001
    Material Weakness Repeat
  • 608326 2022-002
    Material Weakness
  • 608327 2022-003
    Material Weakness
  • 608328 2022-001
    Material Weakness Repeat
  • 608329 2022-002
    Material Weakness
  • 608330 2022-003
    Material Weakness
  • 608331 2022-001
    Material Weakness Repeat
  • 608332 2022-002
    Material Weakness
  • 608333 2022-001
    Material Weakness Repeat
  • 608334 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $3.81M
14.267 Continuum of Care Program $721,793
93.569 Community Services Block Grant $470,411
14.239 Home Investment Partnerships Program $268,235
81.042 Weatherization Assistance for Low-Income Persons $241,325
14.241 Housing Opportunities for Persons with Aids $215,238
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $131,187
81.999 Unknown $110,470