Finding 485608 (2022-001)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2024-09-03

AI Summary

  • Answer: The payroll processor can change pay rates and create new employees in the system.
  • Trend: This dual access raises concerns about potential errors or fraud.
  • List: Recommend implementing a separation of duties to enhance security and oversight.

Finding Text

Our audit procedures disclosed that the person responsible for processing payroll has the capability of inputting pay rate changes into the payroll software. Additionally, this same individual has the ability to create employees within the payroll module.

Corrective Action Plan

Glens Falls Independent Living Center, Inc. operating as Southern Adirondack Independent Living Center (EIN No. 14-1706914) respectively submits the following corrective action plan for the year ended September 30, 2022: Independent public accounting firm: Bryans & Gramuglia CPAs, LLC, One Pine West Plaza, Suite 107, Albany, New York 12205. Audit Period: October 1, 2021 – September 30, 2022 The finding from the September 30, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS - FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2022-001 – Payroll – Segregation of Duties Finding: Our audit procedures disclosed that the person responsible for processing payroll has the capability of inputting pay rate changes into the payroll software. Additionally, this same individual has the ability to create employees within the payroll module. Recommendation: Due to the limited personnel in the accounting department, we recommend that the individual responsible for processing payroll continue to function with the same responsibilities; however, we recommend a payroll change status report be reviewed each pay period by another individual. This payroll change status form should be signed-off once reviewed. FINDINGS - MAJOR FEDERAL AWARDS PROGRAMS AUDIT U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES PASSED THROUGH THE NEW YORK STATE DEPARTMENT OF HEALTH, NEW YORK STATE DEPARTMENT OF HEALTH NEW YORK HEALTH BENEFIT EXCHANGE AND THE COMMUNITY SERVICE SOCIETY OF NEW YORK Medical Assistance Program - CFDA No. 93.778 Material Weakness: See Finding 2022-001

Categories

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Other Findings in this Audit

  • 485609 2022-001
    Material Weakness
  • 485610 2022-001
    Material Weakness
  • 1062050 2022-001
    Material Weakness
  • 1062051 2022-001
    Material Weakness
  • 1062052 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program - Waiver Programs $422,758
93.432 Acl Centers for Independent Living $190,166
93.464 State Grants for Assistive Technology $161,635
93.432 Covid-19 - Acl Centers for Independent Living $45,078
93.778 Medical Assistance Program $29,864
93.767 Children's Health Insurance Program $2,283