FAC Explorer

Finding 60996 (2022-005)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-04-05
Audit: 49622
Organization: Refugee & Immigrant Self-Empowerment, Inc. (NY)
Auditor: Efpr Group Cpa's PLLC

AI Summary

  • Core Issue: Payments to employees were made outside the payroll system, violating internal control requirements.
  • Impacted Requirements: The Organization must ensure all personnel service payments are processed through the payroll system.
  • Recommended Follow-Up: Enhance internal control policies and review processes to ensure compliance and proper classification of employees and subcontractors.

Finding Text

Criteria - Internal controls require the Organization to make all its personnel service payments through the payroll system. Condition - Payments were made to employees for time worked and recorded but not entered in the payroll system. Short-term employees received payments outside of the payroll system for their contracted period of employment. Cause - Resulted from a lack of internal controls over financial reporting. Effect - The Organization is not following proper internal control procedures. Questioned Costs - None identified. Recommendation - We recommend that the Organization further develops its internal control policies to pay all employees through the payroll system. The Organization should work to improve the review and approval process to properly differentiate between employees and subcontractors and to ensure all employees are paid through the payroll system. Management?s Response - (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: As mentioned above for audit finding 2022-004, we are going to have some specific guidance regarding this process once the HR consultant completes his project. We have already started putting short term contractors in the ADP (payroll system). (c) Anticipated Completion Date: July 31, 2023.

Corrective Action Plan

Name of Auditee: Refugee & Immigrant Self-Empowerment, Inc. Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended September 30, 2022 CAP Prepared by: Haji Adan, Executive Director Phone: 315-214-4480 (A) Current Finding on the Schedule of Findings and Responses (5) Audit Finding 2022-005 (a) Comments on the finding and recommendation: Duly noted. (b) Actions Taken: As mentioned above for audit finding 2022-004, we are going to have some specific guidance regarding this process once the HR consultant completes his project. We have already started putting short term contractors in the ADP (payroll system). (c) Anticipated Completion Date: July 31, 2023.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 60994 2022-003
    -
  • 60995 2022-004
    Material Weakness
  • 60997 2022-003
    -
  • 60998 2022-004
    Material Weakness
  • 60999 2022-005
    Significant Deficiency
  • 61000 2022-004
    Material Weakness
  • 61001 2022-005
    Significant Deficiency
  • 61002 2022-004
    Material Weakness
  • 61003 2022-005
    Significant Deficiency
  • 637436 2022-003
    -
  • 637437 2022-004
    Material Weakness
  • 637438 2022-005
    Significant Deficiency
  • 637439 2022-003
    -
  • 637440 2022-004
    Material Weakness
  • 637441 2022-005
    Significant Deficiency
  • 637442 2022-004
    Material Weakness
  • 637443 2022-005
    Significant Deficiency
  • 637444 2022-004
    Material Weakness
  • 637445 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.576 Refugee and Entrant Assistance_discretionary Grants $159,758
19.522 Overseas Refugee Assistance Programs for Strategic Global Priorities $118,300
10.311 Beginning Farmer and Rancher Development Program $100,129
10.225 Community Food Projects $92,859
19.510 U.s. Refugee Admissions Program $83,509