Finding 544358 (2024-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-03-31

AI Summary

  • Core Issue: Four out of twenty-seven transactions did not meet federal requirements for cost approval and documentation.
  • Impacted Requirements: Costs must be necessary, reasonable, consistently treated, and adequately documented.
  • Recommended Follow-Up: Enforce established policies to ensure all transactions are approved and supported by proper documentation.

Finding Text

Criteria: To be allowable under federal awards, costs must be necessary and reasonable for the performance and administration of the federal award. Costs must meet the following criteria: 1) necessary and reasonable; 2) consistent with policies and procedures; 3) accorded consistent treatment; and 4) are adequately documented. Condition: Expenditures were not consistent with the above criteria. We noted the following: 1) One out twenty-seven transactions tested where an employee’s pay rate was not approved and three out of twenty-seven transactions tested where there was no timesheet approval. 2) One out of twenty-seven transactions tested where management could not provide original supporting documentation. Questioned Costs: None. Context: Four out of twenty-seven transactions tested were not in compliance with federal requirements. Cause and Effect: Internal control procedures are not in place to ensure all transactions are properly approved and supporting documentation is being maintained. Auditors’ Recommendations: Established policies and procedures should be enforced to ensure compliance with federal requirements and the Organizations policies and procedures. All transactions should be appropriately approved and adequately supported by accurate source documentation to demonstrate compliance with federal requirements. Management’s Response: Management acknowledges the audit finding and has evaluated current procedures and have confirmed controls are in place to ensure compliance, accuracy, and accountability in both areas. To prevent unauthorized changes, to strengthen time management controls and ensure proper oversight, management will ensure controls related to the approval process are enforced

Corrective Action Plan

To prevent unauthorized changes, to strengthen payroll and time management controls and ensure proper oversight, controls related to the approval process for staff changes and timesheets will be enforced.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 544359 2024-002
    Significant Deficiency
  • 1120800 2024-001
    Significant Deficiency
  • 1120801 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.591 Family Violence Prevention and Services/state Domestic Violence Coalitions $557,402
16.556 State Domestic Violence and Sexual Assault Coalitions $90,296
16.575 Crime Victim Assistance $15,893
16.588 Violence Against Women Formula Grants $15,000