Finding 501734 (2020-004)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
$1
Year
2020
Accepted
2024-10-03

AI Summary

  • Core Issue: Significant deficiencies in internal controls over payroll expenditures were identified, with 4 out of 60 disbursements lacking proper signatures.
  • Impacted Requirements: Compliance with 2 CFR 200.303 is necessary to ensure federal funds are used appropriately; failure to do so risks unallowable costs.
  • Recommended Follow-Up: ASRWSS should adhere to internal control policies to ensure all expenditures are properly documented and charged to the correct grant.

Finding Text

2020-004 Allowable Costs/Cost Principles – Payroll Federal Agency: U.S. Department of the Interior Federal Program Title: Bureau of Indian Affairs Facilities Operations and Maintenance ALN Number: 15.048 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Numbers and Period: A17AV00174 September 30, 2021 A13AV00271 September 30, 2016 A19AV00094 September 30, 2023 Statistically Valid Sample: No, and not intended to be a Statistically Valid Sample Type of Finding: Significant Deficiency in Internal Control Over Compliance and Other Noncompliance Criteria or Specific Requirement: Per 2 CFR 200.303 awardees must establish and maintain effective internal control to provide reasonable assurance that federal funds are being used appropriately. Condition/Context: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 4 disbursements were not signed by employee and/or supervisor. Questioned Costs: Known question costs of $10,329.55. Unable to determine likely questioned costs. Cause: ASRWSS policies and procedures were not consistently followed, and appropriate documentation was not maintained. Effect: Unallowable costs could be charged to the program. Lack of proper controls can result in misappropriation of ASRWSS resources. Repeat Finding: This finding was issued as prior year reference number 2019-004. Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Views of Responsible Officials: There is no disagreement with the audit finding. Corrective Action Plan: See corrective action plan.

Corrective Action Plan

U.S. Department of Interior Bureau of Indian Affairs Facilities Operations and Maintenance – CFDA No. 15.048 2020-004 Allowable Costs/Cost Principles –Payroll Recommendation: We recommend that ASRWSS follow their internal control policies and procedures to ensure that all expenditures are properly supported and charged to the correct grant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Condition: During our testing of payroll and payroll-related expenditures, it was noted that of the 60 samples tested, 4 disbursements were not signed by the employee and/or supervisor. Action taken in response to finding: Additional staff have been hired to assist with payroll duties. The Payroll Specialist position was created and filled in June of 2021 and since then internal procedures have been developed to ensure that time sheets are complete and correct, and authorized and signed by both the employee and/or supervisor. Complete documentation is reviewed and approved by the General Manager, which is documented by signature on the payroll cover sheet before the payroll is processed. The Administrative Officer position has also been developed and given authority to act on behalf of the General Manger during absence, so that all documents would be properly and completely approved before processing. Additionally, Time Clock Plus software was also purchased and is now used for time tracking. It has enhanced accuracy and reduced manual error by integrating and transferring data directly into the Black Mountain Accounting Software. The new processes implemented are more efficient and have reduced the processing time and payroll effort. Name(s) of the contact person(s) responsible for corrective action: Ashleigh Weeks, General Manager; Tanya Bear, Administrative Officer; and Bailey Day, Human Resources Manager/Payroll Specialist Planned completion date for corrective action plan: Complete

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 501732 2020-002
    Significant Deficiency Repeat
  • 501733 2020-003
    Material Weakness Repeat
  • 501735 2020-005
    Material Weakness
  • 501736 2020-006
    Material Weakness Repeat
  • 501737 2020-007
    Material Weakness
  • 501738 2020-008
    Significant Deficiency
  • 501739 2020-009
    Significant Deficiency
  • 501740 2020-010
    Significant Deficiency Repeat
  • 501741 2020-011
    Significant Deficiency
  • 501742 2020-012
    Significant Deficiency Repeat
  • 501743 2020-013
    Significant Deficiency Repeat
  • 1078174 2020-002
    Significant Deficiency Repeat
  • 1078175 2020-003
    Material Weakness Repeat
  • 1078176 2020-004
    Significant Deficiency Repeat
  • 1078177 2020-005
    Material Weakness
  • 1078178 2020-006
    Material Weakness Repeat
  • 1078179 2020-007
    Material Weakness
  • 1078180 2020-008
    Significant Deficiency
  • 1078181 2020-009
    Significant Deficiency
  • 1078182 2020-010
    Significant Deficiency Repeat
  • 1078183 2020-011
    Significant Deficiency
  • 1078184 2020-012
    Significant Deficiency Repeat
  • 1078185 2020-013
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
15.516 Fort Peck Reservation Rural Water System $12.18M
15.048 Bureau of Indian Affairs Facilities Operations and Maintenance $3.15M