FAC Explorer

Finding 45668 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-06-29
Audit: 52245
Organization: River Partners (CA)
Auditor: Aldrich CPAS + Advisors

AI Summary

  • Core Issue: Lack of a formal process for retaining payroll documentation, leading to missing employee timesheets.
  • Impacted Requirements: Management must establish effective policies for retaining documentation to ensure proper approval and accurate payroll reporting.
  • Recommended Follow-Up: Develop and implement policies to ensure retention of approved timesheets to enhance internal controls and reporting accuracy.

Finding Text

2022-001 Payroll Documentation Retention Criteria: Management is responsible for establishing a system that includes the retention of documentation to evidence proper approval and provide accurate reporting of payroll transactions. Condition: There is no formal process for documentation retention. Context: During our audit, we identified two employee timesheets the Organization was unable to provide documentation. Cause: Inadequate policies and procedures over the retention of documentary evidence of transactions, review, and approval. Effect: Failure to adequately establish and maintain effective internal controls over the documentation of payroll disbursements may result in misstatements to the financial statements and/or unauthorized disbursements not being identified in a timely manner. Questioned Costs: None noted. Repeat Finding: No. Recommendation: We recommend that the Organization develop policies and procedures to ensure retention of documentary evidence of approved timesheets to ensure accuracy of reporting. Views of Responsible Officials: Management agrees with the finding and a response is included in the corrective action plan.

Corrective Action Plan

June 9, 2023 Aldrich CPAs + Advisors LLP 7676 Hazard Center Drive, Suite 1300 San Diego, CA 92108 RE: Corrective Action Plan Dear Aldrich, The following are responses to the finding identified in River Partners and Subsidiary audit for the year ended June 30, 2022. 1) Finding 2022-01 a. Program Information: N/A b. Criteria: The Organization should develop and adopt formal procedures to ensure proper retention of payroll timesheets. c. Condition: During our audit, we observed that the Organization was unable to provide timesheets for two individuals. Response: Prior to October 4, 2021 timesheets were entered and approved in a timesheet database through a third party provider ? REPLICON. Access to this database was maintained until Dec 2022, but due to costs access was not renewed. Starting October 4, 2021, time sheets are maintained in our accounting system Deltek Vantagepoint. All timesheets are electronically input, approved by supervisors and reviewed by Deborah McLaughlin before released to the accounting system and to ADP. We can access and review any timesheet submitted within Vantagepoint. Contact person(s) responsible for corrective action: 1) Aron Stern, CFO 2) Deborah McLaughlin, Senior Administrator Completion date: Internal control procedure noted above have been in effect since October 4, 2021. Sincerely, Aron Stern Chief Financial Officer River Partners and Subsidiary

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 622110 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
11.463 Habitat Conservation $954,932
15.555 San Joaquin River Restoration Program $271,006
15.654 Visitor Facility Enhancements - Refuges and Wildlife $247,141
15.512 Central Valley Project Improvement Act, Title Xxxiv $65,350
15.648 Central Valley Project Improvement (cvpi) Anadromous Fish Restoration Program (afrp) $31,028
10.684 International Forestry Programs $15,198
15.517 Fish and Wildlife Coordination Act $9,035