Finding 8894 (2023-002)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-01-18

AI Summary

  • Core Issue: Inadequate approval and review processes for invoices led to unapproved payments and mathematical errors.
  • Impacted Requirements: Internal control procedures for expenditure documentation were not followed, risking unallowable costs to the grant.
  • Recommended Follow-Up: Ensure all invoices are approved per internal controls and implement a review process for mathematical accuracy before payment.

Finding Text

#2023-002 – Material Weakness – Compliance Requirement Activities - Allowed or Unallowed Abandoned Mine Land Reclamation Program 15.252 Criteria Proper internal control procedures include review and approval of expenditure documentation such as purchase orders and invoices prior to entering expenditures into the system for payment processing. Invoices should also be reviewed for mathematical accuracy to ensure that the Commission and the grant are properly charged. Condition For one of the six payments examined, there was no approval of the supporting invoice or purchase order. Approval occurred with the check signature of the Director of Administration and Finance. In addition, for two of the six payments, the invoices had mathematical errors. Cause Due to oversight, one payment was not approved in accordance with the Commission’s internal control procedures, prior to submission for payment. Additionally, the Commission does not have procedures in place to review invoices for mathematical accuracy prior to payment. Effect Lack of review and approval of invoices can result in unallowable costs charged to the grant program. Questioned Costs None Perspective Information The Commission recalculated all invoices from the vendor and noted four invoices with errors during the year ended June 30, 2023, resulting in an overcharge to the grant of $1,001. Identification as a Repeat Finding There was no similar finding in the prior year. Recommendation We recommend that the Commission approve all invoices in accordance with the Commission’s internal control procedures. We also recommend that the Commission review invoices for mathematical accuracy prior to payment. View of Responsible Officials and Planned Corrective Action The Commission has contacted the vendor to resolve the billing errors and will implement procedures internally to oversee the verification of the accuracy of invoices going forward.

Corrective Action Plan

Pennsylvania Department of Environmental Protection, CFDA #15.252 #2023-002 – Material Weakness – Activities Allowed or Unallowed Recommendation We recommend that the Commission approve all invoices in accordance with the Commission’s internal control procedures. We also recommend that the Commission review invoices for mathematical accuracy prior to payment. View of responsible officials and planned corrective action The Commission has contacted the vendor to resolve the billing errors and will implement procedures internally to oversee the verification of the accuracy of invoices going forward.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles Procurement, Suspension & Debarment

Other Findings in this Audit

  • 8893 2023-001
    Material Weakness
  • 585335 2023-001
    Material Weakness
  • 585336 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
15.252 Abandoned Mine Land Reclamation (amlr) Program $1.05M
66.419 Water Pollution Control State, Interstate, and Tribal Program Support $803,009
66.466 Chesapeake Bay Program $138,419
97.029 Flood Mitigation Assistance $32,544