Finding Text
Department of Labor, YouthBuild
Federal Financial Assistance Listing # 17.274, 2020-2023
Compliance Requirement: Activities Allowed or Unallowed/Allowable Cost Principles and Period of Performance
Type of Finding: Significant Deficiency in Internal Controls Over Compliance
Criteria: Internal control procedures should ensure the correct amount is paid to employees and submitted for reimbursement.
Condition: The Organization has an internal control process designed to approve and calculate the payroll expense, but the controls did not operate as designed.
Cause: The controls in place did not operate as designed and failed to detect that four pay periods tested had employees that were paid the incorrect amount.
Effect: Four payroll periods were incorrectly calculated, and the wrong amount was paid to an employee and submitted for reimbursement.
Questioned Costs: None reported.
Context/Sampling: A nonstatistical sample of eight pay periods out of 26 total pay periods were selected for testing. Incorrect calculations were done for four pay periods selected.
Repeat Finding from Prior Years: No
Recommendation: We recommend management revise their internal controls to make sure the hours worked agree to the hours paid and submitted for reimbursement.
Views of Responsible Officials: Management is in agreement with this finding.