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.