Finding Text
Criteria or Specific Requirement – Management is required to establish and maintain effective internal control over the federal award that provides reasonable assurance the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition – Evidence of certain payroll expenses transactions under the United States Department of Homeland Security program was not maintained by management.
Context – For 4 out of 40 tested transactions, evidence of timecards and approved payrate documentation was not able to be provided. During the review of the payroll costs, we were unable to identify all the time and effort coded to the federal award. Documentation of payroll registers and evidence of payment was properly maintained.
Cause – There was a payroll software conversion subsequent to the incurrence of such expenses and the District no longer has access to the prior payroll software.
Effect or Potential Effect – The District’s was unable to provide supporting documentation for the payroll expense transactions.
Recommendation – We recommend that management review procedures and change as necessary to ensure evidence is maintained to support expense transactions.
Views of Responsible Officials and Planned Corrective Actions – Management understands and agrees with this finding. Management noted this was due to the payroll software conversion and the timing of the federal award. Policies are being reviewed and new procedures put in place as needed to ensure documentation of proper compliance.