Finding 957191 (2022-001)

Finding 2022-001 Internal Control Allowable costs / Cost Principles Federal Agencies: U.S. Department of the Treasury Federal Programs: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Numbers: 21.027 Award Numbers: SLFRP1590 Award Years: 2021 Type of Finding: Significant deficiency in internal control over compliance and noncompliance. Criteria: Supporting documentation must be maintained to substantiate payroll expenses paid and ensure they match the approved payrate on file, and are properly reviewed and authorized by both the employee and the Tribal Administrator. Internal controls should be in place to ensure proper supporting documentation is maintained. Condition and Context: During the course of the audit, we tested 15 payroll transactions and encountered multiple instances in which the payroll action form documenting the authorized pay rate was not signed by both the employee and the Tribal Administrator. Cause: Internal controls related to the payroll action forms have not been followed. Effect: Without proper employee approval of payrate on the personnel action form there is an increased risk of potential disagreement over wage rate. Repeat Finding: This is a repeat finding of financial statement Finding 2021-001. Recommendation: We recommend following controls relating to the approval and documentation of payrates on the employee’s personnel action forms. Management response: Management concurs with the Finding. See Corrective Action Plan.