Finding 47842 (2022-001)

Significant Deficiency Repeat Finding
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-03-30

AI Summary

  • Core Issue: Missing payroll records and approvals raise concerns about compliance with allowable costs and activities.
  • Impacted Requirements: Timesheets, W-4 forms, and pay rate records must have proper sign-offs to ensure accuracy and accountability.
  • Recommended Follow-up: Implement a review process to ensure all payroll documentation is complete and properly signed before processing payments.

Finding Text

FINDINGS ? FINANCIAL STATEMENT AUDIT SIGNIFICANT DEFICIENCY Finding 2022-001: Allowable Costs/Activities Allowed 2022-001 Payroll Condition: Payroll records and proper sign-offs were missing. 1) Timesheets for two selected employees did not have proper sign-offs. 2) Form W-4 was not signed for one selected employee. 3) Pay rate record could not be located for one selected employee. 4) Form W-4 was not completed until 2023 for one selected employee. 5) Even though timesheet for one selected employee was signed by employee, supervisory approval was missing. 6) Pay rate records did not have proper signoffs for three selected employees.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: Prior to the FYE 2021 audits, MECCA had identified issues regarding the proper maintenance and review of payroll records and corrective action was taken in November 2021 by the Operations and Administration Coordinator. In November 2021, a full-service payroll and HR company was brought on to support MECCA in meeting all regulatory requirements, which began processing MECCA?s payroll in February 2022 and began working with the Operations and Administration Coordinator to do an internal HR audit in March and April of 2022. As of February 2022, all new employees were on boarded in compliance with all relevant regulatory requirements. And as of January 2023, all active employee files were complete with necessary documentation. In addition to the above corrective action, in April 2022, MECCA?s then Finance Manager implemented a Time and Effort policy and conducted a Time Survey to capture the staff time spent on programs. From May 2022 to September 2022, MECCA required staff to recertify time allocations quarterly. Starting October 2022, MECCA staff certify their time and effort allocations monthly. MECCA conducts the Time Survey annually, and the current Finance and Operations Director is responsible for ensuring staff Time and Effort is properly captured. The then Executive Director and the then Director of Operations and Program Administration were responsible for ensuring the corrective actions were implemented. In 2023, MECCA's Current Executive Director will be responsible for ensuring compliance to all relevant regulatory requirements. The Executive Director serves as the organizational HR supervisor and is responsible for working with and overseeing the payroll and HR company to ensure that onboarding, proper documentation, timekeeping, payroll, and any HR updates or pay rate changes are done for compliance. Name of Contact Person Responsible for Corrective Action Plan: Yesenia Ochoa, Executive Director Anticipated Completion Date: January 31, 2023

Categories

Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 47843 2022-002
    Significant Deficiency Repeat
  • 47844 2022-001
    Significant Deficiency
  • 47845 2022-003
    Significant Deficiency
  • 624284 2022-001
    Significant Deficiency Repeat
  • 624285 2022-002
    Significant Deficiency Repeat
  • 624286 2022-001
    Significant Deficiency
  • 624287 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.023 Covid-19 Community Outreach and Engagement Services $1.98M
97.032 Covid-19 Fema Crisis Counseling Assistance and Training Program $1.96M
93.788 State Targeted Response to the Opioid Crisis Grants - Youth Opioid Response Services $71,891
93.959 Block Grants for Prevention and Treatment of Substance Abuse $55,199
93.788 State Targeted Response to the Opioid Crisis Grants - Medication Assisted Treatment Access Points Project $37,616