Finding 648757 (2022-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-05-03

AI Summary

  • Core Issue: One I-9 form was incomplete and another was missing, violating federal requirements for employee documentation.
  • Impacted Requirements: Compliance with federal regulations for maintaining Form I-9 for all eligible employees under the COVID-19 grant program.
  • Recommended Follow-Up: Implement procedures for timely completion and review of I-9 forms before adding employees to payroll.

Finding Text

SIGNIFICANT DEFICIENCY: Finding 2022-002 Information on the Federal program: The finding relates to Federal funds received from the Small Business Administration, for fiscal year 2022, under the COVID-19 - Shuttered Venue Operators Grant Program, assistance listing number 59.075. Criteria: The United States Federal government requires Form I-9?s be maintained for all eligible employees. Condition: Out of the twenty-five selections tested, we noted one I-9 form which was not properly completed by the Organization. We also noted one additional selection where the I-9 form was unable to be located. Cause: The Organization experienced turnover in the accounting department during fiscal years 2022 and 2021. Review of required document was not performed on a timely basis. Effect: Because of the failure to maintain required forms, ineligible employees may be added to payroll. Was the finding a repeat of a finding in the immediately prior year?: No Recommendation: Procedures should be implemented requiring the completion of required forms and the formal review and approval should be performed prior to adding employees to payroll. Management Response: Management takes this extremely seriously and will bring in temporary support staff in order to bring all accounts fully up to date and to implement new systems and practices according to these recommendations.

Categories

Eligibility Significant Deficiency

Other Findings in this Audit

  • 72315 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
59.075 Covid-19 - Shuttered Venue Operators Grant Program $4.18M