Finding 564791 (2023-003)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2025-06-13

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over payroll time approval, with 2 out of 25 samples lacking necessary review and approval.
  • Impacted Requirements: Compliance with 2 CFR sections 200.303 and 200.430 is at risk, as effective internal controls and accurate timekeeping records are not being maintained.
  • Recommended Follow-Up: Implement stronger controls to ensure all payroll transactions are reviewed and approved by the Executive Director or designated employee to prevent potential compensation errors.

Finding Text

2023-003 (2022-003) – Payroll Time Approval – Significant Deficiency in Internal Controls over Compliance ALN: 84.126 Federal Award Title: Rehabilitation Services Vocational Rehabilitation Grants to States Federal Agency: United States Department of Education Pass-Through Entity: Texas Health and Human Services Commission Award Number(s): HHS000186000005, HHS000202900008 Federal Award Year: 2023 Condition: During our review of payroll related transactions, 2 of the 25 payroll samples tested did not have review and approval of the Executive Director or Employee on the timecard. Criteria: 2 CFR section 200.303 – Internal Controls of the Uniform Guidance states that the non-federal entity must: (a) Establish and maintain effective internal controls over Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Per 2 CFR section 200.430 – Compensation – personal services, paragraph (i) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. Effect: The Organization may unintentionally under/over compensate what is applicable for the work performed by that employee. This could lead to questioned costs and repayment of funds to the grantor agency. Cause: The Organization does not have proper controls in place to verify that documentation was maintained to indicate the employees’ time paid under the Federal grant. Questioned Costs: No questioned costs identified.

Categories

Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 564787 2023-002
    Significant Deficiency Repeat
  • 564788 2023-003
    Significant Deficiency Repeat
  • 564789 2023-004
    Significant Deficiency Repeat
  • 564790 2023-002
    Significant Deficiency Repeat
  • 564792 2023-004
    Significant Deficiency Repeat
  • 1141229 2023-002
    Significant Deficiency Repeat
  • 1141230 2023-003
    Significant Deficiency Repeat
  • 1141231 2023-004
    Significant Deficiency Repeat
  • 1141232 2023-002
    Significant Deficiency Repeat
  • 1141233 2023-003
    Significant Deficiency Repeat
  • 1141234 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.126 Rehabilitation Services Vocational Rehabilitation Grants to States $102,759
93.369 Acl Independent Living State Grants $97,131
93.432 Covid-19: Acl Centers for Independent Living $11,174
93.432 Acl Centers for Independent Living $9,942