Finding Text
Finding #2023-001
Type: Material weakness over allowable costs
Assistance Listing:
21.027 Coronavirus State and Local Recovery Funds
Requirement:
Invoices should be approved before payment. In addition, per Uniform Grant Guidance 200.430, charges to federal awards for salaries and wages must be based on actual work performed, supported by internal controls, and part of the official records of the Organization.
Condition/Context:
Invoices (40 out of 40) and timesheets/payroll records (5 out of 40) approvals could not be substantiated.
Cause:
Policies and oversight were not in place for formal documentation of invoices and timesheets.
Effect:
Improper or inaccurate amounts could be paid or charged to contracts.
Questioned Costs:
None.
Recommendation:
We recommend that supervisors sign off on invoices and timesheets during the process of review. Procedures should be put in place to ensure reviews are completed timely.
Management Response:
Management has expanded the finance team and with the guidance of a nonprofit finance consultant additional roles are set to be established so that there is support to be able to be able to adequately review and approve invoices, as well as train and hold accountability with supervisors for payroll approval.