Finding Text
#2023-001 – Significant Deficiency – Authorization and Approval Procedural Controls
Victims of Crime Act (VOCA), ALN #16.575
Criteria
2 CFR 200.430 (i) Standards for Documentation of Personnel Expenses states, “Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (a) be supported by a system of internal control which provides reasonable assurance that the changes are accurate, allowable, and properly allocated; … (e) and comply with the established accounting policies and practices of the non-Federal entity.”
Condition
When selecting timesheets for testing, it was noted that the Executive Director was approving their own timesheet.
Cause
The cause is human error, as the normal internal control process is for the Executive Director to review all time allocated to the grants and approve all timesheets.
Effect
The potential effects of self-review and approval of payroll records could include an over or understatement of salary expenses charged to the grants.
Questioned Costs
None
Perspective Information
The finding noted related to all pay periods in calendar year 2023.
Identification as a repeat finding
There was no similar finding in the prior year.
Recommendation
We recommend delegating the approval of the Executive Director’s timesheet to another member of management involved in regular office procedures.
View of Responsible Official
Effective immediately, the Assistant Director signs the biweekly timesheets of the Executive Director.