Finding Text
Finding 2023-001: Allowable costs – material weakness in internal controls over compliance and
compliance finding. Special Education - Grants for Infants and Families ALN 84.181
Early Childhood Intervention Services Criteria: The Organization’s internal control procedures over compliance specify that all
employees maintain timesheets with hours that agree to the payroll register and support the
amounts allocated to grant activities. Condition: During allowable cost testing for federal and state grants, for 2 of the 25 payroll
transactions tested, the amount charged to the grant did not agree to the employee's timesheet. Cause: The Organization had turnover in the accounting department that resulted in oversight. Effect: The cumulative effect of the exceptions noted during tested resulted in the grants being
overcharged by the Organization. Questioned Costs: None Recommendation: Management should ensure amounts charged to the grants agree to timesheets
and payroll registers before the request for reimbursement is submitted. Management’s Response: See corrective action plan