Exceptional Persons, Inc.Non-Profit

Criteria - The Organization is required to maintain adequate documentation to support management?s estimates and proper documentation of approval of expenditures. Condition - During our audit over a major federal program, we found that two time cards did not have a proper signature which represents approval of the employee?s time. These time cards came from one employee who works in a management role. We also noted, in four instances, that when time is allocated to different departments, management did not have proper documentation to support management?s allocation. Cause - There were no procedures in place to ensure management staff?s time cards are approved by another employee in management. There were also no procedures in place to document management?s estimate of the allocation of salaries nor a process in place to review these estimates on a regular basis. Effect or Potential Effect - Salaries being allocated to incorrect departments that receive different funding from the federal government, local government and other third parties. Context - We sampled 17 employees? payrolls charged to a major federal program. Identification of Repeat Finding - N/A Auditor?s Recommendation - We recommend that the Organization establish procedures to have management staff?s time be approved by another employee in management who is familiar with the employee?s job responsibilities. We also recommend that the Organization establish procedures to maintain proper documentation to support management?s estimate of salaries between departments and to review that estimate on a regular basis or when the employee?s job responsibilities materially change. Views of Responsible Officials and Planned Corrective Actions - We will review our procedures and implement the auditor recommendations when cost effective. Auditor?s Conclusion - Response accepted.