Finding 540831 (2024-001)

Significant Deficiency
Requirement
G
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 350468
Organization: Vantage Aging (OH)
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: In one payroll period, in-kind supervisor wages were incorrectly recorded, leading to overstated and understated amounts.
  • Impacted Requirements: Compliance with the OMB requirements for a 10% match in the SCSEP program was compromised due to inaccurate reporting.
  • Recommended Follow-Up: Management should enhance internal controls by implementing additional reviews and checks, such as dual entry systems and regular audits of data entry.

Finding Text

Condition: For one payroll period during the SCSEP grant year-end June 30, 2024, a portion of the in-kind supervisor wages used to meet the required 10 percent match was imported incorrectly to the general ledger, resulting in some supervisor in-kind wages being overstated and others being understated. We also noted 2 other instances where in-kind supervisor hours recorded, did not agree to the supporting documentation. Criteria: Under the compliance requirements listed out in the OMB Compliance Supplement for the Senior Community Service Employment Program (SCSEP), a grantee must contribute a matching, in cash or in-kind, of not less than 10 percent of the total cost of the project. Cause: Current internal control procedures over review and posting of in-kind supervisor wages are not properly functioning to detect and correct input errors in the manual posting of in-kind wages each pay-period. Effect: Errors in the recording of in-kind wages could result in the Organization improperly reporting in-kind hours to the funders. Context: Out of a test of 25 in-kind charges, for 5 of the charges impacted, the support did not agree to the in-kind wages posted. The errors were generally isolated to one pay-period during the grant year ended June 30, 2024. A statistical sample was not used. Recommendation: We recommend that management review internal control procedures over the tracking and posting of in-kind wages and implement some additional reviews and checks of the input of data such as a dual entry system, validation rules or regular audits of the manually entered data.

Corrective Action Plan

Vantage Aging acknowledges the condition and recommendation of the audit finding. In reviewing and updating our internal control procedures, we have implemented additional hour checks to the payroll worksheets. This will provide a comparison of hours entered each payroll into the in-kind reporting system to ensure reasonableness of the hours being reported for match. Staff who are in charge of running in-kind reporting will also be notified of completed and reviewed payroll periods to allow for the inclusion or exclusion within in-kind reports to ensure that non-completed payroll periods are not included in reports prior to their recognition into our general ledger and programmatic reports.

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 540832 2024-001
    Significant Deficiency
  • 540833 2024-001
    Significant Deficiency
  • 1117273 2024-001
    Significant Deficiency
  • 1117274 2024-001
    Significant Deficiency
  • 1117275 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
17.235 Senior Community Service Employment Program $1.86M
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) 94.002 $371,722
93.053 Nutrition Services Incentive Program $66,933
21.027 Coronavirus State and Local Fiscal Recovery Funds $60,000
93.052 National Family Caregiver Support, Title Iii, Part E $40,528
10.575 Farm to School Grant Program $27,699
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $20,950
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $5,453
97.024 Emergency Food and Shelter National Board Program $2,691
14.218 Community Development Block Grants/entitlement Grants $1,575
93.667 Social Services Block Grant $533