Finding 5725 (2023-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2023-12-20

Audit: 7744

Organization: Old Colony Elder Services, Inc. (MA)

Auditor: Citrin Cooperman & Company LLP

AI Summary

Issue: Four out of forty-three employee timecards were not approved before payroll processing, risking inaccurate payroll costs for the grant.
Requirements: Funding for the Aging Cluster must be used according to the agreement, which includes proper payroll expenditure approvals.
Follow-up: Ensure all timecards receive approval before payroll processing to strengthen internal controls.

Finding Text

Condition: During the testing of the Aging Cluster payroll expenditures, it was discovered that four of forty three employee timecards tested was not approved prior to processing of payroll, leading to the potential for inaccurately including or allocating payroll expenditures to the grant. Criteria: Funding under the Aging Cluster is to be used for nutrition and supportive services consistent with the terms of the agreement with the Area Agency and the service provider which is inclusive of payroll expenditures. Cause: The Organization's management did not review and approve the timecard prior to processing of the payroll. Effect: Since the internal control surrounding approval of timesheets prior to processing payroll was ineffective, there exists the possibility that payroll expenditures were improperly included or allocated to the grant. Recommendation: The Organization should check to ensure all timecards are approved before payroll is processed.

Corrective Action Plan

Management acknowledges this situation occurred, and in response to the finding, has reviewed and enhanced the timecard approval process, which includes a requirement for hourly employees to complete and verify their timecard by the end of the last day of the pay period and review by a supervisor by noon on the Monday of payroll week. If either an employee or supervisor verification is absent, human resources will analyze work hours and approve the appropriate time. Human resources will monitor timecards throughout the payroll period to detect any potential issues as soon as possible so they can be addressed timely, including random checks of each payroll by the human resources director and manager to verify the accuracy of time cards.. In addition, Human resources will provide ongoing support and training to all employees regarding the payroll process, the importance of deadlines, and the potential consequences for failure to comply. On a quarterly basis, human resources and finance will collaborate to ensure the accuracy of labor allocations.

Other Findings in this Audit

5726 2023-001

Significant Deficiency
5727 2023-001

Significant Deficiency
582167 2023-001

Significant Deficiency
582168 2023-001

Significant Deficiency
582169 2023-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.053	Nutrition Services Incentive Program	$477,519
93.045	Special Programs for the Aging_title Iii, Part C_nutrition Services	$278,069
94.002	Retired and Senior Volunteer Program	$142,487
93.052	National Family Caregiver Support, Title Iii, Part E	$117,744
93.043	Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services	$34,132
93.044	Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers	$18,365