FAC Explorer

Finding 537657 (2024-001)

Significant Deficiency Repeat Finding
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2025-03-27
Audit: 348933
Organization: Washington County Commission on Aging, Inc. (MD)
Auditor: Deleon & Stang CPAS and Advisors

AI Summary

  • Core Issue: Payroll tracking errors were found where timesheet data did not match the general ledger, indicating weaknesses in internal controls.
  • Impacted Requirements: Compliance with Uniform Guidance (2 CFR 200.430) for accurate payroll records and internal controls was not fully met.
  • Recommended Follow-Up: Continue monitoring payroll recording processes and ensure regular reviews to prevent future discrepancies.

Finding Text

Finding 2024-001 – Internal Controls over Payroll Tracking & Recording Assistance Listing #: ALL Federal Awards: All Criteria: In accordance with the Uniform Guidance’s compensation requirements (2 CFR 200.430), payroll systems must be based on records that accurately reflect the work performed and supported by a system of internal controls that provides reasonable assurances that charges are accurate; allowable and reasonable; and properly allocated amongst programs. Condition: During our testing of 40 payroll transactions, we noted six instances where the time charged on the employee’s timesheet by program did not agree to the programs actually charged in the general ledger, and ultimately billed to the applicable grant award. Thes errors identified occurred earlier in the fiscal year and prior to the completion of the FY 2023 audit when management became aware of the issue and implemented additional controls. Cause: The Organization summarizes employee timesheet data amongst programs on a reclass spreadsheet, which serves as the basis for entry into the general ledger. It appears there were errors when entering time from the timesheet into the reclass spreadsheet, which were not detected as a secondary review was not performed. After the issue was brought to the attention of management during the FY 2023 audit which was conducted in February 2024, no similar errors were detected in our sample. Effect: The effect of the errors noted above was immaterial; however, an inherent risk exists that errors could be material without a sufficient review process. Questioned Costs: N/A Repeat Finding: Yes Recommendation: As noted above, we recommend the Organization continue monitoring the recording of payroll costs to ensure that payroll costs are captured and recorded correctly in the financial management system. Response: We concur with the Finding. Additional controls were implemented late in fiscal year 2024 to ensure accurate recording of time charged to programs as reflected on the employee’s timesheet, which included training and periodic reviews of payroll transactions. As noted above, the errors cited were prior to those controls implemented.

Categories

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 537645 2024-001
    Significant Deficiency Repeat
  • 537646 2024-001
    Significant Deficiency Repeat
  • 537647 2024-001
    Significant Deficiency Repeat
  • 537648 2024-001
    Significant Deficiency Repeat
  • 537649 2024-001
    Significant Deficiency Repeat
  • 537650 2024-001
    Significant Deficiency Repeat
  • 537651 2024-001
    Significant Deficiency Repeat
  • 537652 2024-001
    Significant Deficiency Repeat
  • 537653 2024-001
    Significant Deficiency Repeat
  • 537654 2024-001
    Significant Deficiency Repeat
  • 537655 2024-001
    Significant Deficiency Repeat
  • 537656 2024-001
    Significant Deficiency Repeat
  • 537658 2024-001
    Significant Deficiency Repeat
  • 537659 2024-001
    Significant Deficiency Repeat
  • 537660 2024-001
    Significant Deficiency Repeat
  • 537661 2024-001
    Significant Deficiency Repeat
  • 537662 2024-001
    Significant Deficiency Repeat
  • 537663 2024-001
    Significant Deficiency Repeat
  • 537664 2024-001
    Significant Deficiency Repeat
  • 537665 2024-001
    Significant Deficiency Repeat
  • 537666 2024-001
    Significant Deficiency Repeat
  • 1114087 2024-001
    Significant Deficiency Repeat
  • 1114088 2024-001
    Significant Deficiency Repeat
  • 1114089 2024-001
    Significant Deficiency Repeat
  • 1114090 2024-001
    Significant Deficiency Repeat
  • 1114091 2024-001
    Significant Deficiency Repeat
  • 1114092 2024-001
    Significant Deficiency Repeat
  • 1114093 2024-001
    Significant Deficiency Repeat
  • 1114094 2024-001
    Significant Deficiency Repeat
  • 1114095 2024-001
    Significant Deficiency Repeat
  • 1114096 2024-001
    Significant Deficiency Repeat
  • 1114097 2024-001
    Significant Deficiency Repeat
  • 1114098 2024-001
    Significant Deficiency Repeat
  • 1114099 2024-001
    Significant Deficiency Repeat
  • 1114100 2024-001
    Significant Deficiency Repeat
  • 1114101 2024-001
    Significant Deficiency Repeat
  • 1114102 2024-001
    Significant Deficiency Repeat
  • 1114103 2024-001
    Significant Deficiency Repeat
  • 1114104 2024-001
    Significant Deficiency Repeat
  • 1114105 2024-001
    Significant Deficiency Repeat
  • 1114106 2024-001
    Significant Deficiency Repeat
  • 1114107 2024-001
    Significant Deficiency Repeat
  • 1114108 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $174,462
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $80,373
93.052 National Family Caregiver Support, Title Iii, Part E $62,222
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) 94.002 $54,157
16.575 Crime Victim Assistance $52,120
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $28,910
14.218 Community Development Block Grants/entitlement Grants $26,235
93.053 Nutrition Services Incentive Program $25,815
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $23,069
93.324 State Health Insurance Assistance Program $19,510
93.071 Medicare Enrollment Assistance Program $15,000
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $14,968
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $11,022
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $7,704
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $2,860