Finding 969430 (2022-013)

ALN 97.067 - HOMELAND SECURITY GRANTS PROGRAM (HSGP) Reference Number 2022-013 Payroll Costs Criteria: The Homeland Security Grants program (Operation Stonegarden) allows funds to be used for operational overtime costs associated with law enforcement activities, in support of border law enforcement agencies for increased border security enhancement. Internal controls should be in place to ensure such overtime costs are accurately tracked to ensure reimbursement is requested only for allowable costs and allowable activities. Condition Found: Internal controls are not suitably designed to ensure overtime costs charged to the program are correct and accurate. A sample of 40 payroll transactions were selected for testing and the following inaccuracies were noted. One instance was noted where an employee worked 10 overtime hours performing Operation Stonegarden eligible activities, however, 16 overtime hours were charged to the program. One instance was noted where an employee worked 12.5 overtime hours performing Operation Stonegarden eligible activities, however, only 5.5 overtime hours were charged to the program. One instance was noted where an employee worked 8 overtime hours performing Operation Stonegarden eligible activities, however, the employee timesheet reflected 11.75 hours. Context: Condition was noted in conducting testing for internal controls over compliance and compliance. A random sample of 40 payroll transactions were selected for testing. Effect: Ineffective internal controls related to the tracking of overtime hours results in incorrect reimbursement requests submitted for reimbursement. Such errors may result in ineligible costs charged to the program. Questioned Costs: None reported. Cause: Controls are not suitably designed to ensure Operation Stonegarden hours are accurately tracked. Recommendation: We recommend the City strengthen internal controls related to the tracking of Operation Stonegarden overtime costs. As part of the process for requesting reimbursement, we recommend all supporting documentation be reviewed including employee timesheets, daily activity report summaries, OPSG overtime submission forms and reimbursement request forms. Repeat Finding from Prior Year(s): N/A Views of Responsible Officials: See management’s corrective action plan.