Finding Text
Federal Agency: U.S. Department of Treasury
Federal Program Name: Coronavirus State and Local Fiscal Recovery Funds
Assistance Listing Number: 21.027
Award Period: July 1, 2022 through December 31, 2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance with respect to record
retention
Specific requirement-criteria: The Organization is required to provide support that internal
controls over compliance are in place.
Condition: Internal controls over compliance of allowable costs were not in place to support
that the organization had implemented controls to prevent, detect, or correct errors in calculating
provider payments or payroll that were allocated to the federal program.
Questioned costs: None
Context:
Provider Payments
Providers payments calculations are not reviewed for errors by a separate individual. In a
sample of 20, the amount used in the calculation for 7 providers was higher than the maximum
award amount per the provider agreement. A copy of the signed provider agreement was not
consistently retained by the Organization.
In a sample of 20, 1 attendance sheet did not support the attendance number used in the
provider payment calculation. The lack of controls over the calculation resulted in an
overpayment to the provider of less than $1,000.
Payroll
In a sample of 2, there was no record of timesheet approval by a supervisor or of the overall
approval of the associated payroll register. There was no record of the approved pay rate for 1
of the 2 items selected. Cause: The Organization is in the startup phases and the Uniform Grant Requirements are new
as 2022 was the first year federal funding was received. Formal policies and procedures over
record retention were not yet in place when getting the Organization's operations started.
Effect or potential effect: The amounts paid to providers, employees, or vendors could be
improperly calculated resulting in an error in the funds covered under the federal grant.
Repeat finding: No
Recommendation: We recommend that management continue to recruit for staff to fill the
needed positions in the finance department as they continue to grow.
Management response: We agreed with the above comment and are actively recruiting for
positions in the finance department.