FAC Explorer

Finding 369480 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2024-02-15
Audit: 290698
Organization: Tennessee Immigrant and Refugee Rights Coalition (TN)
Auditor: Blankenship CPA Group PLLC

AI Summary

  • Core Issue: Five out of 34 timecards lacked necessary approvals before payments, indicating ineffective controls.
  • Impacted Requirements: Compliance with grant agreements and the Compliance Supplement regarding allowable costs.
  • Recommended Follow-Up: Ensure all timecard approvals are documented prior to disbursement by January 31, 2024.

Finding Text

Criteria: The Organization must have controls in place to ensure costs are allowable per grant agreement and Compliance Supplement. Per the Compliance Supplement, Section B, Allowable Costs/Cost Principles, the Organization must ensure direct charges to federal awards were for allowable costs and adequately documented. Condition: Timecards are reviewed by the appropriate personnel to ensure costs are allowable. Based on 34 timecards selected for testing, 5 did not have approvals documented before the disbursement occurred. Cause: The Organization's controls were not functioning effectively.Effect: Unallowable costs could be submitted for reimbursement due to controls not functioning effectively. Recommendation: We recommend that the Organization document all timecard approvals before the disbursement occurs. Proposed Completion Date: January 31, 2024

Corrective Action Plan

Management accepts the recommendation. Corrective Action Taken: The organization has since implemented additional controls to ensure costs are allowable per grant agreement and compliance supplement by moving all timesheet tracking to ADP, a Professional Employer Organization (PEO), that requires supervisor oversight and documented approval of all timesheets before payroll. After supervisors approve hours, the finance manager will ensure expenses are allocated based on the time allocated in the timesheets and the individual’s supervisor will review individual payroll expenses to ensure accuracy. The senior operations director will then review and approve all expenses before paychecks are issued. As a result of the transition from timesheet spreadsheets for part-time employees to ADP’s timesheet tracking with required supervisor approval documentation in October 2022 for every employee and added payroll expense approval procedures, we do not anticipate an issue with allowable cost determination moving forward. Anticipated Completion Date: January 31, 2024

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 369477 2022-001
    Material Weakness
  • 369478 2022-002
    Material Weakness
  • 369479 2022-001
    Material Weakness
  • 369481 2022-001
    Material Weakness
  • 369482 2022-003
    Significant Deficiency
  • 945919 2022-001
    Material Weakness
  • 945920 2022-002
    Material Weakness
  • 945921 2022-001
    Material Weakness
  • 945922 2022-003
    Significant Deficiency
  • 945923 2022-001
    Material Weakness
  • 945924 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $271,540
93.268 Immunization Cooperative Agreements $196,657
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $180,000
97.024 Emergency Food and Shelter National Board Program $6,800