Finding 2023-001 – Significant Deficiency in Internal Controls over Allowable Costs (Payroll) – COVID-19 ARPA Child Care and Development Block Grant – 93.575
Recommendation: YMCA management should strengthen its controls related to the review and approval of information on employee time sheets and pay rates including proper evidence is maintained of the control over compliance with allowable cost requirements, related to payroll.
Corrective Action: The referenced significant deficiency was due to several factors including, but not limited to system migration from one third party payroll provider to another. For any future system migrations, the evidence of the review and approval of employee time sheets and pay rates will be retained.
Person Responsible for Corrective Action: Chief Financial Officer
Anticipated Completion Date for Corrective Action: The third party payroll provider has transitioned to one more well suited to the needs of the YMCA and management has begun efforts to ensure that the approval of payroll, as captured within the system at the time of processing payroll, will also be retained for future reference, should it be needed. The remaining aspects of the Corrective Action will be immediately implemented in response to the auditor's recommendation.