Finding 479414 (2023-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-07-25

Audit: 315916

Organization: Family Counseling Service of the Finger Lakes, Inc. (NY)

Auditor: Efpr Group CPAS LLC

AI Summary

Core Issue: Internal controls for the timesheet approval process were ineffective, leading to delays in supervisor approvals for 15 out of 178 timesheets.
Impacted Requirements: The Organization's policy mandates timely sign-off by both employees and supervisors, which was not consistently followed.
Recommended Follow-Up: Review and improve the timesheet process, ensuring all employees and supervisors receive proper training on the policy.

Finding Text

Condition: The internal controls over the timesheet approval process were not operating properly. As a result, employee timesheets were not approved by a supervisor within a reasonable timeframe in 15 of the 178 timesheets selected for testing and 1 of the 178 timesheets lacked a date for the supervisor signoff. Timesheets were also not signed by the employee within a reasonable timeframe in 1 of the 178 timesheets selected for testing. Criteria: The Organization’s policy requires sign off on all timesheets by the employee preparing the timesheet as well as documented approval by the supervisor. Proper functioning internal controls would result in the organization having consistent sign off and approval on all employee timesheets before time recorded is paid out. Cause: The system of controls over the timesheet approval process did not operate properly to allow for the organization to have consistent procedures in place to allow for employee sign off and supervisor approval. Effect: The Organization was not in compliance with their internal policy regarding timesheet preparation and approval. Recommendation: The Organization should review the current timesheet preparation and approval process to allow for a consistent procedure to be put in place and followed throughout the year. All employees and supervisors should be adequately trained on this policy.

Corrective Action Plan

We feel this situation was an anomaly, as the employee’s original Supervisor had taken a new position and the hiring of a replacement Supervisor had not yet taken place. Normally, the Director of Therapeutic Services would have stepped in; however, they were out on medical leave. These special circumstances, while rare, do not negate the need for contingency plans. We will continue to require employees to complete OVS Functional Timecards each month and have their Supervisor review and approve. If the Supervisor is unavailable, the Director of the appropriate program will review and approve. If the Director of the appropriate program is unavailable, VP of Operations will review and approve the functional timecard. Specifically, employees will complete and sign their monthly functional timecards and submit for Supervisor review no later than the 15th of the month following their support of OVS. Supervisors (or if needed, Program Directors or VP of Operations) will review and approve via signature no later than end of the month following timecard timeframe. All completed and approved functional timecards will be sent by the supervisor to VP of Operations for review of completeness and filed for documentation purposes.

Other Findings in this Audit

479415 2023-002

Significant Deficiency
1055856 2023-001

Significant Deficiency
1055857 2023-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
16.575	Crime Victim Assistance	$3.51M
16.839	Stop School Violence	$449,108
93.243	Substance Abuse and Mental Health Services Projects of Regional and National Significance	$126,621
93.671	Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services	$21,845