Connecticut's Department of Veterans Affairs improperly authorized overtime and compensatory time for employees and failed to keep track of inventory, a new state audit found.
The audit, which covered fiscal years 2020 and 2021, specifically faulted the agency for paying employees comp and overtime before supervisors issued approval. In some examples, that approval came weeks after the money was paid.
"There is an increased risk for the improper earning and use" of compensatory and overtime, auditors noted.
In responses included with the audit, the DVA agreed with the findings and pledged to improve accountability.
In a statement this week, DVA Commissioner Ron Welch, brigadier general, USA (Ret.), said: "We are reviewing the results of the 2020-2021 state audit report with our staff and program directors. We appreciate the efforts of the audit team and will move forward with their recommendations."
The DVA provides comprehensive health, social and rehabilitative services to veterans in Connecticut and operates the Veterans Home in Rocky Hill, which includes a 125-bed skilled nursing facility and 488-bed residential facility for eligible veterans. The department also operates the Office of Advocacy and Assistance, which assists veterans and their families in accessing federal, state, local benefits and entitlements.
Compensatory Time
Auditors pointed out department policy requires supervisors approve employee compensatory time before the money is paid out.
"Our review of 48.25 hours of compensatory time earned by 10 employees revealed that five employees obtained supervisory approval five to 24 days after earning compensatory time," auditors said. "We also found that the department enrolled three employees in the wrong compensatory time plan."
During the audited period, 18 employees earned 326.75 hours of compensatory time.
"Enrolling employees in the wrong compensatory time plans could result in ineligible employees earning time," auditors said. "The late approval of compensatory time and incorrect enrollment appear to be the result of a lack of management oversight. The Department of Veterans Affairs should strengthen internal controls to ensure it properly preauthorizes compensatory time and enrolls employees in the correct plan."
The finding had been previously reported in the last two audit reports covering 2016 through 2019.
In response, the agency acknowledged the "deficiency" and pledged to make changes.
"Currently, employees that are enrolled in incorrect compensation plans are quickly corrected due to greater oversight and response," the agency said in the audit. "Payroll's processing of new hires includes compensation plan enrollment according to the individual's bargaining unit. DVA Payroll works to accurately input employees transferring from another department. Payroll has been diligently reviewing each compensation form to ensure inclusion of the appropriate approvals, and dates. Payroll approves time based on the manager or supervisor's approval."
Overtime Approval
Much like with comp time, auditors pointed out overtime must first receive supervisory approval before it can be worked and paid to an employee.
Auditors said a review of 769 hours of overtime earned by 10 employees identified:
- 72 instances in which eight employees requested 586.5 hours of overtime using the wrong form. The employees used the DVA Employee Leave Time Request Form used to request paid leave rather than the DVA Overtime/Compensatory Time Approval Form. As a result, the department did not adequately document whether the overtime hours requests were properly approved, accurately calculated or appropriately recorded.
- Supervisors did not preapprove 38.5 hours of overtime for two employees. Supervisors approved the overtime between six and 26 days after the employee worked the overtime.
- Auditors were unable to verify whether two nurse supervisors obtained Director of Nursing's approval to support 129.75 hours of overtime.
"When the department does not utilize proper forms or follow established overtime procedures, there is an increased risk of unauthorized overtime," auditors said. "The use of incorrect forms and delays in supervisory approval appears to be the result of lack of management oversight."
The finding had not been previously reported in prior audits.
In response, the DVA agreed with the finding.
"Payroll is currently working with all internal departments to ensure the appropriate and universal Overtime Request Form is used agency wide," the DVA said. "Both managers and supervisors of the Nursing Department were made aware that the incorrect forms were being used. They have been provided the most up to date copy of the Overtime/Comp. time request form."
The DVA added: "Managers and supervisors will continuously be educated across all units to ensure appropriate reviewing of all overtime requests occurs based on operational needs."
Asset Management
Auditors said state law requires agencies to establish and maintain inventory as well as an inventory system which provides accountability for safeguarding assets.
Auditors said their review of the asset management system determined DVA did not:
- Provide sufficient documentation for inventory totaling $1.8 million and deletions of $1.8 million for the 2020 fiscal year.
- Report any capital and controllable asset additions or deletions for 2021 fiscal year. Core-CT records indicated $162,510 in additions and $540,711 in deletions.
- Record six asset purchases, totaling $90,243, in the Core-CT asset management module. Additionally, the department did not tag five of these six assets.
- Perform a physical inventory for fiscal years 2020 or 2021. The last inventory was dated June 14, 2017, and auditors noted 481 out of 1,785 controllable inventory items did not have an inventory date in Core-CT.
"Deficiencies in asset management controls decrease the department's ability to properly safeguard assets and accurately report inventory," auditors said. "DVA did not comply with the requirements of the State Property Control Manual. These issues appear to be a result of a lack of management oversight, inadequate asset recording and reporting controls, and staffing changes."
The finding had not been previously reported.
"The Department of Veterans Affairs should strengthen internal controls over the recording, reporting, and safeguarding of assets to ensure compliance with the State Comptroller's Property Control Manual," auditors said.
In response, the agency acknowledged the need for properly tracking all state assets.
"The DVA's previous asset processing supervisor position was non-existent for a few years," DVA said. "The current Fiscal support services staff is engaged in ongoing training and communication with the State Asset Management team to upload and track all agency assets and inventory at CT DVA. This is a continued and improved work in progress."
(c) 2024 The Register Citizen, Torrington, Conn.
Visit The Register Citizen, Torrington, Conn., at www.registercitizen.com
Distributed by Tribune Content Agency, LLC.
