Finding Text
a system of internal controls which provides reasonable assurance that the charges are accurate, allowable and properly allocated.
Condition: During our test of controls, we noted that out of 6 testing selections, 2 were missing approvals on timesheets. These were considered to be exceptions and the internal controls were assessed to be functioning to support only a moderate level of control risk over allowable costs and cost principles once considered with other tests of cash disbursements.
Cause: Internal controls over review of timesheets were not sufficient and Management failed to review and note approvals prior to recording of payroll.
Context: The approvals were missing for one employee’s timesheets multiple times throughout the year. The time charged to the grant agreed with the respective timesheets.
Effect: The Organization is not following their internal control policies. There was no evidence of approval.
Questioned costs: There are no questioned costs associated with this finding.
Repeat finding: This is not a repeat finding.
Recommendation: We recommend that the Organization develop an internal review that includes signing off on timesheets to indicate approval that the timesheets accurately reflect the time worked, that it was an allowable activity, and that the payroll charges were allocated appropriately.
Views of Responsible Officials and Corrective Action Plan (unaudited): See Corrective Action Plan.