FAC Explorer

Finding 43969 (2022-001)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2022-12-20
Audit: 48375
Organization: Goodwill Industries, Inc. / Easter Seals Minnesota (MN)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Goodwill-Easter Seals Minnesota's internal controls for allocating employee pay to grants did not function as intended, leading to improper pay allocations.
  • Impacted Requirements: The organization failed to adhere to its own allocation policy, affecting compliance with grant requirements under assistance listing 93.558.
  • Recommended Follow-Up: Management should enhance the review process for timesheet allocations to ensure accurate pay distribution in line with established policies.

Finding Text

Department of Health and Human Services Temporary Assistance for Needy Families, 93.558 Allowable Activities and Costs Significant Deficiency in Internal Control over Compliance Grant Award Number: Affects all grant awards under assistance listing 93.558 on the Consolidated Schedule of Expenditures of Federal Awards Criteria: Goodwill-Easter Seals Minnesota?s internal control structure should be designed to properly follow the allocation policy for employees? pay to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Condition: Goodwill-Easter Seals Minnesota has an internal control system designed to detect or prevent improper allocation of employees pay to grants in a timely manner in accordance with their established policy, but the controls did not operate as designed. Cause: Goodwill-Easter Seals Minnesota has a process for allocating employee wages based on hours worked; however, during the year for multiple pay periods, it did not follow this process. The controls in place did not operate as designed and failed to detect errors in the allocation of employee pay to the grants. Effect: Employees had some of their pay allocated improperly and not in accordance with the policy established. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of four pay periods out of 26 were selected for testing where 100% of the employees with time allocated to the grant was recalculated. Three of the four pay periods tested had some payroll expenses allocated or calculated improperly for at least one individual with time allocated to the grant. Repeat Finding from Prior Year: No Recommendation: We recommend that management develop a more extensive review over timesheet allocation to ensure pay is properly allocated to each grant in accordance with the policy established by Goodwill-Easter Seals Minnesota. Views of Responsible Officials: Management agrees with this finding.

Corrective Action Plan

Finding 2022-001 Federal Agency Name: United States Department of Health and Human Services Program Name: Temporary Assistance for Needy Families CFDA # - 93.558 Finding Summary: Federally funded employees had some of their pay allocated improperly, within UKG, and not in accordance with the policy established. This was not a deficiency in time and effort reporting. Responsible Individuals: Grant Accountants ? (Wendy DeWell, Tiffany Husbands, Lori Hall), Payroll Department and HR. Corrective Action Plan: The Federal employee?s allocation issue has been identified and systems are in place to avoid this occurrence in the future. Anticipated Completion Date: This was corrected in August 2022, when system updates were put in place.

Categories

Allowable Costs / Cost Principles Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 43970 2022-001
    Significant Deficiency
  • 43971 2022-001
    Significant Deficiency
  • 43972 2022-001
    Significant Deficiency
  • 43973 2022-001
    Significant Deficiency
  • 43974 2022-001
    Significant Deficiency
  • 43975 2022-001
    Significant Deficiency
  • 620411 2022-001
    Significant Deficiency
  • 620412 2022-001
    Significant Deficiency
  • 620413 2022-001
    Significant Deficiency
  • 620414 2022-001
    Significant Deficiency
  • 620415 2022-001
    Significant Deficiency
  • 620416 2022-001
    Significant Deficiency
  • 620417 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $164,222
17.274 Youthbuild $127,126
14.218 Community Development Block Grants/entitlement Grants $85,697
96.008 Social Security - Work Incentives Planning and Assistance Program $66,079
93.994 Maternal and Child Health Services Block Grant to the States $43,893
17.720 Disability Employment Policy Development $38,745
17.278 Wia Dislocated Worker Formula Grants $36,917
17.270 Reintegration of Ex-Offenders $29,386
17.259 Wia Youth Activities $20,064
21.027 Coronavirus State and Local Fiscal Recovery Funds $5,982
93.558 Temporary Assistance for Needy Families $3,346
21.019 Coronavirus Relief Fund $1,192