Finding 966813 (2023-010)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 301192
Organization: City of Amsterdam, New York (NY)
Auditor: Rbt CPAS LLP

AI Summary

  • Core Issue: The City lacks a procedure to review and approve payroll before processing, risking illegitimate checks.
  • Impacted Requirements: Federal regulations require strong internal controls to prevent misuse of funds.
  • Recommended Follow-Up: Implement a review and approval process for payroll entries prior to processing.

Finding Text

Finding 2023-010 Payroll Review 21.027 - Coronavirus State and Local Fiscal Recovery Funds Compliance Requirement: Activities Allowed and Unallowed Type of Finding: Internal Control Deficiency Condition: The City does not have a procedure in place to review and approve payroll after it is entered but before the payroll is processed. Criteria: Federal expenditures require internal controls over processes to ensure federal funds are not misused. Cause: The City has a tight turnaround time for payroll which makes a pre-issuance review difficult. Effect: The City may process checks that are not legitimate. Perspective: RBT noted that out of 5 payroll reports tested, 5 were not reviewed and approved prior to being processed. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the City implement a procedure to review and approve payroll after it is entered but before the payroll is processed. Auditee's Response: See corrective action plan.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 390368 2023-007
    Material Weakness
  • 390369 2023-008
    Significant Deficiency Repeat
  • 390370 2023-009
    Significant Deficiency
  • 390371 2023-010
    Significant Deficiency
  • 966810 2023-007
    Material Weakness
  • 966811 2023-008
    Significant Deficiency Repeat
  • 966812 2023-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $843,349
21.027 Coronavirus State and Local Fiscal Recovery Funds $433,587
20.205 Highway Planning and Construction $269,603
97.039 Hazard Mitigation Grant $91,765
16.607 Bulletproof Vest Partnership Program $990