Finding 59907 (2022-003)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-09-17

AI Summary

  • Core Issue: Personnel activity reports for reimbursement lacked required supervisor approval.
  • Impacted Requirements: Internal controls for compliance with federal award payroll expenditures are ineffective.
  • Recommended Follow-Up: Management should ensure consistent review and approval of personnel activity reports by direct supervisors.

Finding Text

Condition: During our review of internal controls over allowable activities and allowable costs/cost principles compliance requirement for the major federal program above, we noted several instances which personnel activity reports used to generate the request for reimbursement were not signed as approved by the employees? direct supervisor. Criteria: Effective internal controls should be established to prevent or detect noncompliance with required compliance requirements over federal awards, including payroll expenditures charged to federal awards. Cause: Procedures are not being consistently applied to review personnel activity reports before preparation of monthly request for reimbursement and submission to grantor. Effect: As a result of the deficiency noted, internal controls over personnel charges to federal programs were deemed to be ineffective to prevent or detect noncompliance with compliance requirements over federal awards. Recommendation: Management should review procedures over approval of personnel activity reports and ensure procedures are being consistently followed including review of all reports by employees? direct supervisor.

Corrective Action Plan

Personnel Activity Reports are vital support documents for the billing process for all Federal grant dollars received. There were times when there was no review supervisor available for approval of the individual document. Since the Urban League has expanded staff to include a Quality Assurance and Data Compliance position, this person will be added to the list of individuals who can approve this document for all programs. Additionally, Vice Presidents, program supervisors and the Quality Assurance and Data Compliance position will now have the authority to approve these forms should the review supervisor be unavailable.

Categories

Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

  • 59908 2022-004
    Significant Deficiency
  • 636349 2022-003
    Significant Deficiency
  • 636350 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.558 Temporary Assistance for Needy Families $675,236
93.667 Social Services Block Grant $71,523
14.218 Community Development Block Grants/entitlement Grants $21,096