Finding 607134 (2022-001)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-09-20
Audit: 26413
Organization: Waldo Community Action Partners (ME)
Auditor: Wipfli LLP

AI Summary

  • Core Issue: Two on-call employees were paid incorrectly at their regular rate instead of the on-call rate, and one employee's timecard lacked proper labor distribution, leading to incorrect charges to the CSBG program.
  • Impacted Requirements: Internal controls must effectively prevent payroll errors and ensure that salary charges to federal awards accurately reflect actual work performed.
  • Recommended Follow-Up: Conduct a review of pay rates and labor distribution on electronic timecards before payroll processing to ensure accurate grant charges.

Finding Text

Finding Number: 2022-001 Repeat Finding: No Type of Finding: Significant Deficiency Description: Payroll Expenditures Condition: Out of the sample tested, there were two on-call employees in the Transportation program that were paid at their regular pay rate rather than the on-call rate. There was also one employee?s electronic timecard where there was a split of time noted, however there was no labor distribution filled out, thus Paychex defaulted to the ?home? program which is CSBG. This resulted in hours that were incorrectly charged to the CSBG program. Criteria: Internal controls are effective if they are properly designed and implemented to prevent or detect errors in payroll processing prior to the audit. Also, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable and properly allocated. Cause: The internal controls of the Organization were not effective in preventing or detecting and correcting the pay rates used to compensate the employees tested and labor distribution used to charge programs prior to the audit. Effect: Without proper review of pay rates entered in the system used to compensate employees and a review of labor distribution on electronic timecards, it is possible that grants could be over or undercharged. Recommendation: We recommend that a review of the pay rates and labor distribution on electronic timecards, be performed to ensure they are correct prior to payroll being processed, to ensure grants are charged for the correct amount of payroll expenses. View of responsible officials: Management agrees with the finding and has committed to a corrective action plan.

Categories

Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 30692 2022-001
    Significant Deficiency
  • 30693 2022-002
    Significant Deficiency
  • 30694 2022-001
    Significant Deficiency
  • 30695 2022-001
    Significant Deficiency
  • 607135 2022-002
    Significant Deficiency
  • 607136 2022-001
    Significant Deficiency
  • 607137 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $2.20M
93.568 Low-Income Home Energy Assistance $640,242
20.509 Formula Grants for Rural Areas and Tribal Transit Program $434,315
93.569 Community Services Block Grant $270,059
10.558 Child and Adult Care Food Program $136,780
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $112,712
21.026 Homeowner Assistance Fund $105,000
93.600 Head Start $86,247
93.558 Temporary Assistance for Needy Families $62,068
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $44,920
93.667 Social Services Block Grant $29,416
81.042 Weatherization Assistance for Low-Income Persons $20,425
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $19,639
10.766 Community Facilities Loans and Grants $10,461
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated and State Partnership Marketplaces $2,869
10.559 Summer Food Service Program for Children $324