Finding 44179 (2022-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-07-17
Audit: 44722
Organization: Do Good Multnomah (OR)

AI Summary

  • Core Issue: There is a material weakness in the approval process for invoices and timesheets related to federal awards.
  • Impacted Requirements: Invoices must be approved before payment, and salary charges must reflect actual work with proper documentation.
  • Recommended Follow-Up: Supervisors should formally approve invoices and timesheets, and timely review procedures need to be established.

Finding Text

Finding #2022-002 Type: Material weakness over federal awards Assistance Listing: 14.231 Emergency Solutions Grant Program 21.019 Coronavirus Relief Funding 21.027 Coronavirus State and Local Recovery Funds Requirement: Invoices should be approved before payment. In addition, per Uniform Grant Guidance 200.430, charges to federal awards for salaries and wages must be based on actual work performed, supported by internal controls, and part of the official records of the Organization. Condition/Context: Invoices (112 out of 120) and timesheets/payroll records (23 out of 120) approvals could not be substantiated. Cause: Policies and oversight were not in place for formal documentation of invoices and timesheets. Effect: Improper or inaccurate amounts could be paid or charged to contracts. Questioned Costs: None. Recommendation: We recommend that supervisors sign off on invoices and timesheets during the process of review. Procedures should be put in place to ensure reviews are completed timely. Management Response: Management has implemented an electronic timekeeping system for payroll which requires timecards to be approved prior to submitting payroll. Management will also be reviewing each invoice prior to payment to ensure invoices are approved.

Corrective Action Plan

Finding # 2022-002 Material weakness U.S. Department of Treasury U.S. Department of Housing and Urban Development 14.231 Emergency Solutions Grant Program 21.019 Coronavirus Relief Funding 21.027 Coronavirus State and Local Recovery Funds Finding: Invoices and timesheets/payroll records approvals could not be substantiated. Recommendation: Supervisors should sign off on invoices and timesheets during the process of review. Procedures should be in place to ensure all reviews are completed timely. Corrective Action: We are implementing electronic timekeeping system for payroll which requires timecards to be approved prior to submitting payroll. We are also reviewing each invoice prior to payment to ensure invoices are approved. Anticipated Completion Date: June 30, 2023

Categories

Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 44180 2022-004
    Significant Deficiency Repeat
  • 44181 2022-002
    Material Weakness Repeat
  • 44182 2022-005
    Significant Deficiency
  • 44183 2022-002
    Material Weakness Repeat
  • 44184 2022-005
    -
  • 44185 2022-003
    Significant Deficiency Repeat
  • 44186 2022-002
    Material Weakness Repeat
  • 44187 2022-004
    Significant Deficiency Repeat
  • 620621 2022-002
    Material Weakness Repeat
  • 620622 2022-004
    Significant Deficiency Repeat
  • 620623 2022-002
    Material Weakness Repeat
  • 620624 2022-005
    Significant Deficiency
  • 620625 2022-002
    Material Weakness Repeat
  • 620626 2022-005
    -
  • 620627 2022-003
    Significant Deficiency Repeat
  • 620628 2022-002
    Material Weakness Repeat
  • 620629 2022-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.30M
21.019 Coronavirus Relief Fund $768,937
14.231 Emergency Solutions Grant Program $376,371