Finding Text
Department of Treasury
Federal Financial Assistance Listing/ALN 21.027
COVID‐19 Coronavirus State and Local Fiscal Recovery Funds
Allowable Costs and Allowable Activities
Material Weakness in Internal Control over Compliance
Criteria ‐ A good system of internal controls includes a process to ensure that all payroll costs and invoice allocations are properly calculated.
Condition ‐ We noted that the Organization’s internal controls did not have adequate internal controls to ensure payroll costs and invoice allocations are properly calculated.
Cause ‐ During the course of our engagement, we noted that 11 of the expenses selected for testing, stemming primarily from a change in payroll systems, for the program were not correctly calculated.
Effect ‐ The Organization’s internal controls failed to ensure costs to the program are properly calculated.
Questioned Costs ‐ None Reported.
Context/Sampling ‐ A nonstatistical sample of 60 costs were selected for expense testing. 11 out of the 60 costs tested lacked proper calculation of costs. These transactions totaled $13,955 of $293,562 costs tested.
Repeat Finding from Prior Year(s) ‐ Yes.
Recommendation ‐ Management should implement internal controls to ensure proper cost allocation calculations.
Views of Responsible Officials ‐ There is no disagreement with the finding.