FAC Explorer

Finding 52679 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-01-05
Audit: 44256
Organization: YWCA of Hanover, Pa, Inc. (PA)
Auditor: Smith Elliott Kearns & Company LLC

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over allowable costs, specifically regarding payroll allocations not matching approved timecards.
  • Impacted Requirements: Procedures for reconciling employee payroll allocations to timecards were not followed, leading to inaccuracies in grant reimbursement requests.
  • Recommended Follow-up: Implement regular reconciliation processes to ensure payroll expenses align with approved timecards and grant agreements to avoid future discrepancies.

Finding Text

Significant Deficiency in Internal Control over Allowable Costs Criteria: Internal control processes should include procedures to ensure all employee payroll allocations are routinely reconciled, supported by appropriate documentation such as timecards, and adjusted to reflect the correct allocation for submission reimbursement in accordance with grant agreements. Condition: During our audit, we noted several employees? wages were not allocated to the grant the employees were performing services. The allocation of payroll expenses didn?t reconcile to signed and approved timecards for the pay period. Cause: Due to not reconciling the spreadsheets used to calculate grant reimbursement back to the approved employee timecards for the pay period. Effect: The lack of reconciliation caused the grant allocations to be inaccurately stated by an approximated projected amount of $2,000. The allocation error of employees? payroll expenses resulted in the Organization requesting and receive grant reimbursement for payroll expenses that were incurred by a different grant agreement.

Corrective Action Plan

Processing of timesheets procedure to be fortified. A new grant administrator with grant management experience will be hired early 2023. This position will be responsible for reconciling all employee timesheets for accuracy before going to Safe Home Director for final review and signature. Any discrepancies found will be reviewed with employee and changes made if necessary. Any changes to be initialed by the employee. Once all verifications are completed, CFO will process for payroll. Training for all staff with grant funding will take place during initial hire and reviewed periodically as needed or sources of funding change. CFO will prepare spreadsheet for grant submission, Grant Administrator and Safe Home Director will review for accuracy paying particular attention to the salaries being submitted. Once reviewed and everyone is in agreeance Grant Administrator will submit to the proper funding source.

Categories

Allowable Costs / Cost Principles Cash Management Significant Deficiency

Other Findings in this Audit

  • 52680 2022-001
    Significant Deficiency
  • 52681 2022-001
    Significant Deficiency
  • 629121 2022-001
    Significant Deficiency
  • 629122 2022-001
    Significant Deficiency
  • 629123 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $452,471
10.558 Child and Adult Care Food Program $78,801
14.267 Continuum of Care Program $57,797
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $34,103
16.588 Violence Against Women Formula Grants $33,920
93.558 Temporary Assistance for Needy Families $18,180
16.320 Services for Trafficking Victims $16,700
93.667 Social Services Block Grant $8,735
93.575 Child Care and Development Block Grant $7,333
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $5,853
16.582 Crime Victim Assistance/discretionary Grants $4,708