Finding 524086 (2024-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-02-20
Audit: 343240
Organization: City of Newton (NC)

AI Summary

  • Core Issue: Timesheets for payroll reimbursed with ARPA funds lacked required supervisor signatures.
  • Impacted Requirements: Internal control procedures under 2 CFR 200 were not adequately followed.
  • Recommended Follow-Up: Implement additional controls to ensure proper documentation of timesheet reviews.

Finding Text

US Department of Treasury Program Name: COVID-19 Coronavirus State and Local Fiscal AL # 21.027 Significant Deficiency Finding 2024-002 Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that casefiles include all required documentation and proper signatures. Condition: During our internal control test over payroll reimbursed using ARPA funds, we noted employee timesheets were not signed off by the supervisor. Effect: Controls were not functioning to ensure that documentation of timesheet review is in place. Cause: Controls were not functioning as designed. Recommendation: We recommend that management put additional controls in place to ensure that review of timesheets is documented. Name of Contact Person: Kimberley Robinson, Finance Director Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan submitted with this report.

Corrective Action Plan

Name of Contact Person: Kimberley Robinson, Finance Director Corrective Action/Management’s Response: In January 2024 the City of Newton implemented the following corrective action plan in response to finding 2023-001; however, during the audit process for FY24 timesheets were reviewed that were prior to this implementation date. The City of Newton makes every effort to ensure that timesheets are submitted, signed, reviewed, and entered in the payroll system accurately and efficiently. Once timesheets are approved by supervisors they are sent to HR for processing. If at any time during this process the HR staff member entering the information is aware of missing approval or other information on the timesheet, they will verify the data with the supervisor and sign off on the timesheet in an effort to not delay the weekly timesheet processing. This will be notated on the timesheet for documentation purposes. Proposed Completion Date: Immediate and ongoing

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 524087 2024-002
    Significant Deficiency
  • 1100528 2024-002
    Significant Deficiency
  • 1100529 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $820,103
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $14,549
66.458 Clean Water State Revolving Fund $4,916
16.922 Equitable Sharing Program $1,562
16.607 Bulletproof Vest Partnership Program $606