Finding Text
2023-002: DOCUMENTATION OF APPROVALS--VOCA
Condition and Criteria: Employee pay rates must be approved by the direct supervisor and management.
Cause: There is not an adequate internal control system to ensure that documented approval of an employee pay rate by both the supervisor and management was received.
Effect: Grant claims could erroneously claim unallowed costs, due to the lack of documented approval. As this is a documentation of approval issue, there are no questioned costs identified.
Context: Testing was conducted on a sample of employees for employment procedures and documentation. One employee from the ten tested did not contain an approved pay rate in the employee’s file.
Identification of Repeat Findings: This finding is not a repeat finding.
Recommendation: Internal controls and procedures should be established and documentation maintained to support all employee pay rate approvals.
Views of Responsible Officials and Planned Corrective Actions: YWCA acknowledges discrepancies in data metrics reported.
• Develop a written procedure to support all employee pay rate approvals to be signed by employee, supervisor (if applicable), Director, and CEO.
• Conduct training sessions to ensure approval procedure is followed and proper documentation obtained.
• Implement a digital tracking system for file management of approval documents.