Finding Text
Finding Number 2024-002: Approval of nonpayroll disbursements
Repeat Finding: No
Type of Finding: Significant Deficiency in Internal Control Over Compliance
Description: Approval of nonpayroll disbursements
Major Programs: AL#10.557 - WIC Special Supplemental Nutrition Program for Women, Infants and Children – Award numbers: CD3-22-4658B and CD3-24-4658A; AL#81.042 – Weatherization – 80224, 80225, 81323, and 84023; AL#93.569 – Community Services Block Grant – Award numbers: CFS-23-7009 and CFS-24-7009
Questioned Costs: None
How the questioned costs were computed: N/A
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs, Cost Principles
Condition: During our audit, Wipfli LLP noted there were 2 instances of nonpayroll disbursements not being approved. Specifically, cell phone reimbursements were given to staff that supervise others and there was no oversight over these transactions. However, there was no process or policy to approve these types of transactions.
Criteria: Internal controls that provide for proper segregation of duties should be in place.
Cause: The Organization does not have the proper review process in place to ensure that the cell phone reimbursements are reviewed by supervisors prior to payroll being processed.
Effect: Without proper review and approval of expenses allocated to the grants, it is possible that grants could be over or undercharged.
Recommendation: We recommend the Organization implement systems and procedures to ensure cell phone reimbursements are approved by supervisors prior to payroll being processed, to ensure grants are charged for proper expenditures.
View of Responsible Officials: Management agrees with the findings and has committed to a corrective action plan. WMCA has implemented a process to submit the personnel action form for approval.