Finding Text
Reference Number: 2023-004 Proper Approval of Expenditures
Federal Agency: U.S. Department of Justice
Federal Program: OVW Technical Assistance Initiative – ALN 16.526
Compliance
Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles
Type of Finding: Material Weakness in Internal Control over Compliance
Criteria: Employee time and expenses allocated to federal grants should be approved by a supervisor or authorized individual.
Statement of
Condition: Five of the forty payroll expenses tested did not include a documented supervisor approval of employee time worked and charged to the grant. Seven of the thirty-seven expenses tested did not include documented approval of the expenses charged to the grant.
Statement of Cause: There was a breakdown in controls over documentation of review and approval of selected time worked and expenses incurred.
Possible Asserted
Effect: Possible incorrect payroll expense or other expenses charged to federal grants programs.
Questioned Costs: None
Context: Five of the forty payroll expenses tested did not include a documented supervisor approval of employee time worked and charged to the grant, while the other thirty-five employees tested did include documented approval. Seven of the thirty-seven expenses tested did not include documented approval of the expenses charged to the grant, while the other thirty expenses tested did include documented approval of the expenses.
Repeat Finding: N/A
Recommendation: Management should enhance procedures to ensure all payroll time worked and expenses incurred are reviewed and documented by authorized employees.
View of Responsible
Officials and Planned
Corrective Actions: We have implemented a new electronic timesheet system. Our Director of Finance will review system reports monthly to ensure proper supervisory review and sign-offs have occurred.