Finding 574621 (2024-001)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-08-25
Audit: 364886
Auditor: Tkm

AI Summary

  • Core Issue: There are significant deficiencies in internal controls over compliance, particularly in timesheet reviews and employment contract management.
  • Impacted Requirements: Errors in timesheets and missing signatures on employment contracts violate compliance standards, and indirect costs were not reported in the SEFA.
  • Recommended Follow-Up: Strengthen review processes for timesheets, ensure all employment contracts are properly signed and stored, and accurately report all costs in compliance documents.

Finding Text

Condition: During our review of the major program’s expense transactions, we noted the following instances of deficiencies in internal control over compliance:: In four out of five timesheets reviewed, there were errors and discrepancies that were not caught during management’s review of the timesheets, indicating that the control procedure is not operating effectively. .One out of three employment contracts reviewed were not signed by the employee and the appropriate supervisor. The signed copy of the employment contract could not be located. Management did not include indirect costs of $83,399 related to the major program in the SEFA. This was corrected by the auditors.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.959 Covid-19 - Block Grants for Substance Use Prevention, Treatment, and Recovery Services (sapt Covid Relief) $1.09M
93.958 Covid-19 - Block Grants for Community Mental Health Services (cmhs Covid Relief) $502,682