Finding 7613 (2022-002)

Description: Review of Account Reconciliations and Financial Statements Repeat Finding: No Type of Finding: Significant deficiency in internal controls over the allowable costs and reporting compliance requirements Questioned Costs: None Major Program: AL # 64.033, VA Supportive Services for Veteran Families Program, #20-OR-430 and #20-OR-430-C3 Condition: During the audit, Wipfli LLP observed one employee whose gross payroll did not correspond to the approved wage rate authorization. The discrepancy was not material to the financial statements or to reported grant expenditures. Criteria: Salaries paid to employees and expensed to the Organization’s funding sources need to be based on approved wage rate authorizations. Cause: An updated wage rate authorization was not maintained by the Organization in this employee’s personnel files. Effect: As a result of the matter identified in the condition paragraph, a significant deficiency exists in the Organization’s internal controls over payroll expense. Recommendation: We recommend the Organization implements procedures to ensure the Organization properly approves and documents changes in pay rates when such changes occur and retain the documentation in the employees’ personnel files. View of responsible officials: Management agrees with the assessment and has committed to a corrective action plan.