PENNSYLVANIA CHIEFS OF POLICE ASSOCIATION

#2024‐001 – Significant Deficiency – Authorization and Approval Procedural Controls Edward Byrne Memorial Justice Assistance Grant Program ALN #16.738 Criteria Internal controls are intended to prevent errors and irregularities, identify problems and ensure that corrective action is taken. A member of Association management should review timesheets and payroll records as the foundation of authorization and approval procedures over payroll. Condition During the course of the audit, it was determined that management did not consistently perform a review of timesheets completed by their subordinates. Cause The cause is human error. Effect The potential effects of not authorizing payroll records could include an over or understatement of salary expenses. Questioned Costs None Perspective Information The finding noted related to test work performed for four (4) pay periods, with six (6) employees selected per pay period. No approval was noted on a total of three (3) employee timesheets tested across two (2) of the pay periods selected. Identification as a repeat finding There was no similar finding in the prior year. Recommendation We recommend the Executive Director review timesheets for every employee for each pay period, and sign off indicating this review has occurred. View of Responsible Official After reviewing the recommendation from Hamilton & Musser, the Association agrees that the Executive Director will carefully review and sign off on time sheets for each employee during every pay period to confirm the review. This has and will continue to be the custom and practice of the Association.

#2019-001 ? Significant Deficiency ? Allowable Costs Edward Byrne Memorial Justice Assistance Grant Program, CFDA #16.738 Criteria The Department of Justice, Edward Byrne Memorial Justice Assistance Grant Program, CFDA #16.738 Compliance Supplement requires the auditor to test various compliance requirements. Allowable costs require the auditor to vouch federal award expenditures to appropriate, detailed supporting documentation to determine cost allowability. Condition During our testwork of allowable costs, it was noted that one (1) individual expense report failed to include detailed meal expenses. As a result, we were unable to determine the allowability of items purchased at a restaurant and unable to determine the participants. Cause The cause is human error. Effect The potential effects of not possessing detailed receipts could include charging non-allowable costs to the federal awards such as alcohol or non-approved personnel such as spouses attending, and the expenditures being allocated to the grant. Questioned Costs None Perspective Information The findings noted related to one (1) individual and was not noted with other individuals submitting expense reports. Identification as a repeat finding There was no similar finding in the prior year. Section III ? Findings and Questioned Costs ? Major Federal Award Programs Audit (continued): #2019-001 ? Significant Deficiency ? Allowability (continued) Recommendation We recommend that the Organization only accept detailed receipts from all employees and subcontractors. If detailed receipts are not provided, we recommend the Organization not charge the expenditure to the federal award. We further recommend that management confirm the accuracy of the computations for expense reports. View of responsible officials and planned corrective action The Association agrees with the report and accepts your finding. One of our contractors did not submit an itemized receipt for meal(s) at a restaurant. This is not the practice of the Association. The Association will continue to mandate detailed receipts for all our contractors. We will not accept expenses for meal purchases at restaurants unless they provide detailed receipts.

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