Finding 964531 (2023-001)

Significant Deficiency Repeat Finding
Requirement
AB
Questioned Costs
$1
Year
2023
Accepted
2024-03-28
Audit: 299919
Organization: Delta Human Resource Agency (TN)
Auditor: Crs CPAS

AI Summary

  • Core Issue: Employees submitted more hours for reimbursement than they actually worked, leading to potential overpayment.
  • Impacted Requirements: The Agency must only request funds that accurately reflect earned hours, adhering to proper timekeeping practices.
  • Recommended Follow-Up: Ensure the program manager verifies timesheets against spreadsheets and that the deputy director reviews all reimbursement requests for accuracy.

Finding Text

Finding: Several instances were noted where more hours than worked were turned in for reimbursement from the granting agency. In addition, an instance was noted where a USDA employee's time was charged to the transportation grant. Criteria: The Agency should only request funds they have earned from the granting agency. Cause: The program manager used a spreadsheet to recap the employees' time and did not always reduce the employees' time for the employees' lunch period. As reimbursement requests were prepared the spreadsheet was relied upon instead of the actual timesheet. The instance where the employee's time was charged to the wrong grant was just an oversight. Effect: The Agency received funds in excess of actual earned amounts. Our testing resulted in $694.08 of potential questioned costs. Recommendation: If the program manager is going to use a spreadsheet, extra caution needs to be taken to ensure the amounts are transferred correctly. Also the deputy director should either rely on the actual timesheet or verify the spreadsheet matches the timesheet prior to reimbursement request. The Agency needs to take extra caution reviewing employees time as it relates to each program. Management's Response: We concur with this finding.

Categories

Questioned Costs Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 388089 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $2.02M
20.509 Formula Grants for Rural Areas and Tribal Transit Program $852,242
93.569 Community Services Block Grant $392,740
10.569 Emergency Food Assistance Program (food Commodities) $261,987
97.024 Emergency Food and Shelter National Board Program $68,776
10.568 Emergency Food Assistance Program (administrative Costs) $28,850