Finding 409744 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2022-11-14
Audit: 311939
Organization: Arrive Ministries (MN)
Auditor: Bergankdv LTD

AI Summary

  • Core Issue: The Organization failed to keep all emails documenting the Executive Director's approval for payroll changes.
  • Impacted Requirements: Compliance with internal controls over payroll expenditures charged to the federal program.
  • Recommended Follow-Up: Implement a process to ensure all email approvals are documented and retained for future payroll periods.

Finding Text

2022-002 ? Documentation of Internal Control to Support Approvals of Payroll Charged toFederal ProgramAssistance Listing Number: 19.510Federal Program Name: U.S. Refugee Admissions ProgramName of Federal Agency: Department of StateCompliance/Internal Control over Compliance: Allowable CostsCriteriaThe Organization's policy is for the Executive Director to approve the timecard/payroll additions,deletions and changes via email.Cause:The Organization did not maintain all emails to support the Executive Director's approval.ConditionThe Organization was unable to provide sufficient documentation of the Executive Director's approvalfor two of the five pay periods tested.Questioned costsNoneEffectThe Executive Director's approval of the Organization's payroll expenditures charged to the federalaward was not adequately supported.RecommendationWe recommend the Organization implement a process to maintain documentation of the ExecutiveDirector's approval for all pay periods.Views of responsible officialsWe are in agreement with the finding. We will be implementing a process to retain email approvalsreceived for payroll charged to the federal program. We have a process for getting these approvals, wewere just not maintaining the records of the approval, specifically due to a change in executive directorduring the time period specifically tested. We have already gone back retroactively in the current fiscalyear to verify we have retained all these approvals.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 409739 2022-001
    Material Weakness
  • 409740 2022-001
    Material Weakness
  • 409741 2022-001
    Material Weakness
  • 409742 2022-002
    Significant Deficiency
  • 409743 2022-002
    Significant Deficiency
  • 409745 2022-003
    Significant Deficiency
  • 409746 2022-003
    Significant Deficiency
  • 409747 2022-003
    Significant Deficiency
  • 986181 2022-001
    Material Weakness
  • 986182 2022-001
    Material Weakness
  • 986183 2022-001
    Material Weakness
  • 986184 2022-002
    Significant Deficiency
  • 986185 2022-002
    Significant Deficiency
  • 986186 2022-002
    Significant Deficiency
  • 986187 2022-003
    Significant Deficiency
  • 986188 2022-003
    Significant Deficiency
  • 986189 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
19.510 U.s. Refugee Admissions Program $291,341
93.566 Refugee and Entrant Assistance_state Administered Programs $51,581