Internal Audit. Sonoma County

Transcription

1 Auditor-Controller-Treasurer-Tax Collector Internal Audit Sonoma County Agreed Upon Procedures Report: County of Sonoma Human Services Department Youth Education & Employment Services Fiscal Monitoring For the Period Ended June 30, 2012 Audit No: 3240 Report Date June 12, 2012 Audit Manager: Kanchan Charan, CPA Audit Supervisor: Damian Gonshorowski, CPA Auditor: Scott Jann

2 Agreed-Upon Procedures Report Table of Contents Page Auditor-Controller s Report on Applying Agreed-upon Procedures Appendix A - Schedule of Workforce Investment Act Funds Awarded And Selected Month Claim Amount... Appendix B - and Associated Findings

3 DAVID E. SUNDSTROM, CPA AUDITOR-CONTROLLER TREASURER -TAX COLLECTOR 585 FISCAL DRIVE, SUITE 100 SANTA ROSA, CA PHONE (707) FAX (707) DONNA DUNK, CPA ASSISTANT AUDITOR-CONTROLLER JONATHAN KADLEC ASSISTANT TREASURER-TAX COLLECTOR Penny Knicely Santa Rosa, CA Auditor-Controller s Report on Applying Agreed-upon Procedures We have performed the procedures enumerated in Appendix B of this report, agreed to by the, solely to assist you, in evaluating the Youth Education & Employment Services recipients compliance with the terms and conditions of the Services Agreement and OMB Circular A-122. Special emphasis has been placed on salaries and benefits for funding and administration of the Programs for the program year The recipient s management is responsible for compliance with those requirements. This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the. Consequently, we make no representation regarding the sufficiency of the procedures described in Appendix B either for the purpose for which this report has been requested or for any other purpose. The schedule at Appendix A identifies the Youth Education & Employment Services recipients total funding awarded by source and the amount of the February 2012 reimbursement claim which was the month selected by you for monitoring. The procedures we applied and associated findings can be found in Appendix B of this report. We were not engaged to and did not conduct an examination, the objective of which would be the expression of an opinion on the accompanying Schedule of Workforce Investment Act Funds Awarded and Selected Month Claim Amount (Appendix A). Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. This report is intended solely for the information and use of the County of Sonoma Human Services Department and is not intended to be and should not be used by anyone other than the specified party. June 12, 2012

4 Appendix A Youth Education & Employment Services Fiscal Monitoring Schedule of Workforce Investment Act Funds Awarded And Selected Month Claim Amount Contract CBO WIA Funds Awarded February Claim YS California Youth Outreach $ 146,114 $ 9, YS YS Petaluma People Services Center Social Advocates for Youth $ $ 97,114 87,403 $ 8, $ 7, YS YS Sonoma County Adult and Youth Development The Center for Social & Environmental Stewardship $ $ 97,114 97,114 $ 8, $ 9, YS West County Community Services $ 97,114 $ 8,

5 and Associated Findings Background For many years the has provided Workforce Investment Act funding to Community Based Organizations (CBOs) to assist youth, aged years of age, with Education and Employment skills. The types of services being provided to those individuals are many based on the Program and include, but are not limited to, the following: Youth Education and Employment Services o Outreach and recruitment to attract eligible in-school and out-of-school youth. o In-depth objective assessment. o Development of an individual service strategy. o Case management. o Tutoring. o Study skills and instruction. o Alternative secondary school services. o Summer employment opportunities. o Paid and unpaid work experience. o Occupation skills training o Leadership development opportunities o Adult mentoring o Comprehensive guidance counseling There were a total of six (6) CBOs that received Workforce Investment Act awards during the contract period. We performed monitoring procedures on the February 2012 Claim for all CBOs awarded these funds

6 and Associated Findings I. California Youth Outreach Overview Reimbursement requests from California Youth Outreach were based on amounts incurred for the following budgeted categories: Administrative Staff Salaries and Benefits. Direct Staff Salaries and Benefits. Office Supplies. Client Supplies. Communications/Telephone. Travel/Staff Mileage. Staff Training/Conferences. Printing/Duplication. Postage. Consultants/Professional Services. Small Tools and Equipment. Participant Incentives. For each employee selected for February claim testing, we ensured that the hours approved on time sheets agreed with the hours recorded in the payroll register. We also confirmed that the gross payroll amounts from the payroll register agreed with the recorded amounts in the general ledger, the expense was recorded in the proper period and the net payment amounts from the payroll registers cleared the bank statements. Tested direct costs from the February claim request were traced and agreed to supporting invoices/receipts, the general ledger and on to proof of payment support via cancelled checks. Payroll and direct expenses tested comprised 98.6% of the total reimbursement claimed in February

7 and Associated Findings II. Petaluma People Services Center Overview Reimbursement requests from the Petaluma People Services Center were based on amounts incurred for the following budgeted categories: Direct Staff Salaries and Benefits. Utilities/Building Maintenance. Insurance. Office Supplies. Communications. Travel/Staff Mileage. Equipment Maintenance. Printing/Duplication. Postage. Books & Educational Aides. Incentives. Indirect Charges. For each employee selected for February claim testing, we ensured that the hours approved on time sheets agreed with the hours recorded in the payroll register. We also confirmed that the gross payroll amounts from the payroll register agreed with the recorded amounts in the general ledger, the expense was recorded in the proper period and the net payment amounts from the payroll registers cleared the bank statements. Tested direct costs from the February claim request were traced and agreed to supporting invoices/receipts, the general ledger and on to proof of payment support via cancelled checks. Payroll and direct expenses tested comprised 84.7% of the total reimbursement claimed in February

8 and Associated Findings III. Social Advocates for Youth Overview Reimbursement requests from Social Advocates for Youth were based on amounts incurred for: Direct Staff Salaries and Benefits. Rent/Lease of Facility. Utilities/Building Maintenance. Insurance. Office Supplies Consumables. Communications/Telephone. Travel/Staff/Mileage. Staff/Training Conferences. Advertising/Marketing. Printing Duplication. Postage. Incentives. Indirect Charges. For each employee selected for February claim testing, we ensured that the hours approved on time sheets agreed with the hours recorded in the payroll register. We also confirmed that the gross payroll amounts from the payroll register agreed with the recorded amounts in the general ledger, the expense was recorded in the proper period and the net payment amounts from the payroll registers cleared the bank statements. Tested direct costs from the February claim request were traced and agreed to supporting invoices/receipts, the general ledger and on to proof of payment support via cancelled checks. Payroll and direct expenses tested comprised 79.3% of the total reimbursement claimed in February

9 and Associated Findings IV. Sonoma County Adult and Youth Development Overview Reimbursement requests from the Sonoma County Adult and Youth Development were based on amounts incurred for: Administrative Salaries and Benefits. Direct Staff Salaries and Benefits. Clerical Staff Salaries and Benefits. Liability Insurance. Office Supplies. Communications/Telephone. Travel/Staff Mileage. Advertising/Marketing. Print/Copy. Postage. Books & Educational Materials. Recognition/Incentives. Other Expenses For each employee selected for February claim testing, we ensured that the hours approved on time sheets agreed with the hours recorded in the payroll register. We also confirmed that the gross payroll amounts from the payroll register agreed with the recorded amounts in the general ledger, the expense was recorded in the proper period and the net payment amounts from the payroll registers cleared the bank statements. We found one exception as a result of these procedures. Associated Findings During the review of the February paid leave allocation, it was identified that the Finance Director incorrectly calculated various vacation leave allocations which caused a net over payment from the County in the amount of $7.62. Tested direct costs from the February claim request were traced and agreed to supporting invoices/receipts, the general ledger and on to proof of payment support via cancelled checks

10 and Associated Findings Payroll and direct expenses tested comprised 96.3% of the total reimbursement claimed in February V. The Center for Social and Environmental Stewardship Overview Reimbursement requests from The Center for Social and Environmental Stewardship were based on amounts incurred for: Direct Staff Salaries and Benefits. Rent or Lease of Facility. Utilities & Building Maintenance. Insurance. Office Supplies, Consumables. Communications & Telephone. Travel & Staff Mileage. Printing & Duplication. Postage. Consultant & Professional Services. Indirect Charges. For each employee selected for February claim testing, we ensured that the hours approved on time sheets agreed with the hours recorded in the payroll register. We also confirmed that the gross payroll amounts from the payroll register agreed with the recorded amounts in the general ledger, the expense was recorded in the proper period and the net payment amounts from the payroll registers cleared the bank statements. We found one exception as a result of these procedures. Associated Findings The payroll allocation utilized by the Fiscal Manager for vacation, sick and holiday pay of salaried staff was based on 2,080 budgeted hours for the year as opposed to determining the percentage of actual after-the-fact hours worked on each program during the specific pay period and allocating the percentage worked on each program to the hours of vacation, sick or holiday time. The difference in methodology caused an overpayment to payroll in the amount of $ Use of budget estimates instead of after-the-fact time keeping is a violation of OMB Circular A

11 and Associated Findings Tested direct costs from the February claim request were traced and agreed to supporting invoices/receipts, the general ledger and on to proof of payment support via cancelled checks. Payroll and direct expenses tested comprised 74.6% of the total reimbursement claimed in February VI. West County Community Services Overview Reimbursement requests from the West County Community Services were based on amounts incurred for: Administrative Staff Salaries and Benefits. Direct Staff Salaries and Benefits. Rent. Utilities & Building Maintenance. Insurance. Office Supplies. Communications & Telephone. Travel & Staff Mileage. Printing & Duplicating. Postage. Incentives. Indirect Charges. For each employee selected for February claim testing, we ensured that the hours approved on time sheets agreed with the hours recorded in the payroll register. We also confirmed that the gross payroll amounts from the payroll register agreed with the recorded amounts in the general ledger, the expense was recorded in the proper period and the net payment amounts from the payroll registers cleared the bank statements. We found one exception as a result of these procedures. Associated Findings The payroll allocation utilized by the Fiscal Manager for vacation, sick and holiday pay of salaried staff was based on 2,080 budgeted hours for the year as opposed to determining the - 8 -

12 and Associated Findings percentage of actual after-the-fact hours worked on each program during the specific pay period and allocating the percentage worked on each program to the hours of vacation, sick or holiday time. The difference in methodology caused an overpayment to salaries and benefits in the amounts of $12.77 and $1.05 respectively, for a total overpayment of $ Use of budget estimates instead of after-the-fact time keeping is a violation of OMB Circular A-122. Tested direct costs from the February claim request were traced and agreed to supporting invoices/receipts, the general ledger and on to proof of payment support via cancelled checks. Payroll and direct expenses tested comprised 80.0% of the total reimbursements claimed in February Closing Statement We appreciate you choosing our department to perform your monitoring of the Youth Education and Employment Services Program and look forward to assisting you in subsequent years. We would like to thank the staff of the various CBOs selected for monitoring as well as Tracy Marcum for her helpfulness and cooperation. If you have further questions regarding this report of our monitoring process, please contact Scott Jann at (707)