Finding 399969 (2023-004)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-06-05

AI Summary

  • Core Issue: There are significant deficiencies in internal controls over payroll reporting for the U.S. Refugee Admissions Program, leading to errors in grant billings.
  • Impacted Requirements: Compliance with federal guidelines on allowable costs, specifically regarding accurate timesheet reporting and proper documentation for payroll.
  • Recommended Follow-Up: Reinforce adherence to policies for documentation and approvals to prevent errors and ensure accurate billing to grants.

Finding Text

Finding #2023-004 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of State, Passed through U. S. Committee for Refugee and Immigrants, 19.510, U. S. Refugee Admissions Program, Contract periods and grant #’s: 10/01/23 – 09/30/24 SPRMCO23CA0367, 09/01/22 – 09/30/23 SPRMCO23CA0012, 04/15/22 – 09/30/22 SFOP0008350. Criteria: Allowable costs – Effective internal control for grant reporting requires that independent reviews be performed to ensure that hours recorded on timesheets agrees to amounts recorded in the payroll system for labor distribution and that documentation supports the amount allocated. Without an effective system of internal controls, errors in grant billings could occur and not be identified and corrected. Condition and context: During our testing of 25 payroll transactions for the U. S. Refugee Admissions Program, we identified the following exceptions: 1. For 1 transaction, the hours per the timesheet were less than the hours charged to the program. 2. For 1 transaction, the wrong approved pay rate was used for the employee. 3. For 1 transaction, there was no evidence of approval of the time allocation. Repeat of finding #2022-002. Cause: Failure to follow the YMCA’s policies and procedures related to maintenance of documentation and approvals and review of accuracy of hours and rates charged to grants. Effect: Failure to follow established internal control policies and procedures resulted in errors and unallowable costs being charged to the grant. Questioned costs: $44,000. Recommendation: Emphasize adherence to established policies and procedures to ensure maintenance of documentation and approvals, and review of accuracy of hours charged to grants. View of responsible officials: Management agrees with the finding. See Corrective Action Plan.

Corrective Action Plan

Finding #2023-004 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of State, Passed through U. S. Committee for Refugee and Immigrants, 19.510, U. S. Refugee Admissions Program, Contract periods and grant #’s: 10/01/23 – 09/30/24 SPRMCO23CA0367, 09/01/22 – 09/30/23 SPRMCO23CA0012, 04/15/22 – 09/30/22 SFOP0008350. Condition and context: During our testing of 25 payroll transactions for the U. S. Refugee Admissions Program, we identified the following exceptions: 1. For 1 transaction, the hours per the timesheet were less than the hours charged to the program. 2. For 1 transaction, the wrong approved pay rate was used for the employee. 3. For 1 transaction, there was no evidence of approval of the time allocation. Recommendation: Emphasize adherence to established policies and procedures to ensure maintenance of documentation and approvals, and review of accuracy of hours charged to grants. Planned corrective action: Continued growth of these programs necessitates continued evolution of our payroll review processes. The organization performs risk analysis and modifies procedures quarterly around payroll. The specifics of the errors identified above have been incorporated into the risk assessment, and finance and programmatic staff will perform increased post-pay reviews. Responsible officer: Jennifer Garcia, Chief Financial Officer and Jeff Watkins, Chief International Initiatives Officer. Estimated completion date: April 2024.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 399962 2023-002
    Material Weakness
  • 399963 2023-002
    Material Weakness
  • 399964 2023-002
    Material Weakness
  • 399965 2023-002
    Material Weakness
  • 399966 2023-002
    Material Weakness
  • 399967 2023-002
    Material Weakness
  • 399968 2023-003
    Material Weakness Repeat
  • 399970 2023-003
    Material Weakness Repeat
  • 399971 2023-004
    Significant Deficiency Repeat
  • 399972 2023-003
    Material Weakness Repeat
  • 399973 2023-003
    Material Weakness Repeat
  • 399974 2023-005
    Material Weakness
  • 399975 2023-003
    Material Weakness Repeat
  • 399976 2023-003
    Material Weakness Repeat
  • 976404 2023-002
    Material Weakness
  • 976405 2023-002
    Material Weakness
  • 976406 2023-002
    Material Weakness
  • 976407 2023-002
    Material Weakness
  • 976408 2023-002
    Material Weakness
  • 976409 2023-002
    Material Weakness
  • 976410 2023-003
    Material Weakness Repeat
  • 976411 2023-004
    Significant Deficiency Repeat
  • 976412 2023-003
    Material Weakness Repeat
  • 976413 2023-004
    Significant Deficiency Repeat
  • 976414 2023-003
    Material Weakness Repeat
  • 976415 2023-003
    Material Weakness Repeat
  • 976416 2023-005
    Material Weakness
  • 976417 2023-003
    Material Weakness Repeat
  • 976418 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.676 Unaccompanied Alien Children Program $5.87M
93.567 Refugee and Entrant Assistance_voluntary Agency Programs $3.08M
93.576 Refugee and Entrant Assistance_discretionary Grants $1.79M
93.566 Refugee and Entrant Assistance_state Administered Programs $982,079
84.287 Twenty-First Century Community Learning Centers $872,838
16.575 Crime Victim Assistance $751,119
10.558 Child and Adult Care Food Program $464,458
16.320 Services for Trafficking Victims $431,480
10.187 Emergency Food Assistance Program (tefap)commodity Credit Corporation Eligible Recipient Funds (food Commodities) $380,839
10.559 Summer Food Service Program for Children $301,213
97.010 Citizenship Education and Training $134,264
84.215 Fund for the Improvement of Education $121,479
19.510 U.s. Refugee Admissions Program $51,081
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $48,154
10.569 Emergency Food Assistance Program (food Commodities) $31,701
10.182 Local Food Purchase Assistance $22,072