Finding Text
Criteria: A complete system of internal controls requires all expenditures to be properly approved in a timely manner. Condition: The following internal control issues were identified: ? 32 out of 60 expenditures tested lacked timely approval of employees? actual time spent on the program. ? 12 out of 60 expenditures tested lacked employee signatures for certification of actual time spent on the program. Cause: Due to the implementation of policy change occurring during the fiscal year, the new policy was implemented retrospectively. This resulted in an untimely approval process compared to when the expenditures were incurred. Effect: Improper expenses may be paid and allocated to the federal programs or allocated at the wrong amount. Questioned Costs: $0 Context/Sampling: 60 transactions out of 525 total transactions were selected for testing which accounted for $355,918 of $1,537,938 total federal program expenditures. Repeat Finding from Prior Year: No. Recommendation: We recommend Valle del Sol, Inc. and Subsidiary?s management implement a process that ensure review of actual hours for time spent to be billed to the program is completed timely and all time and effort certifications are signed by the respective employees. Views of Responsible Officials: Management agrees with the finding.