Finding Text
Agency: Department of Health and Human Services, Centers for Disease Control and Prevention Federal Program: Immunization Research, Demonstration, Public Information and Education Training and Clinical Skills Improvement Projects Assistance Listing: 93.185 Grant Identification Numbers: NH231P922569 and NH231P922569C5 ? COVID-19 Grant Period: 2022 Finding 2022-001: Significant Deficiency - Internal Controls Over Payroll Criteria: Per 2 CFR 200.430(i), payroll charges must ?be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated?. Condition: There were deficiencies found when testing internal controls over payroll, impacting internal controls over financial reporting and internal controls over compliance. Documentation of review of timesheets by an appropriate level of supervisor was not consistent. Context: Statistical sampling was not utilized, however, sampling methods were applied using AICPA guidelines. Finding 2021-002 noted that AIM employees do maintain timesheets; however, documentation of a review of the time allocation by a supervisor was not consistent. We noted this issue continued at the beginning of the 2022 fiscal year. After policy changes as a result of addressing finding 2021-002, approval by a supervisor was documented consistently. Cause: A formal policy was not in place for the full year that would require approval of timesheets by a supervisor knowledgeable about the activity of the personnel. Effect: Internal controls were not in line with best practices and the lack of approval could result in an inaccurate charge to grants. Questioned costs: There were no questioned costs related to this finding. Repeat finding: This is a repeat finding of 2021-002. Auditor?s recommendation: We recommended that AIM adopt a policy in writing that would require all timesheets be approved by an appropriate level of supervisor. This approval must be documented and retained on file as part of the Organization?s records to support grant activity. Views of Responsible Officials and Corrective Action Plan (unaudited): See corrective action plan.