Audit 235552

Federal Program: Assistance listing number 14.231, Emergency Solutions Grant Program ? United States Department of Housing and Urban Development. Compliance Requirement: Allowable Costs Criteria: A properly designed system of internal control over compliance allows entities to meet those requirements set forth by the federal government. The Organization is required to ensure that costs are adequately documented. Condition: As part of the Organization's internal controls, all payroll changes are documented with a written letter to employees, a copy of which is maintained in the employee personnel file. Our audit results, which included the testing of twenty-five payroll transactions, indicated the following: - Two items tested had hourly rates paid that did not agree to the letters in the personnel files. These employees were paid the correct approved rates and the letters were determined to be incorrect. - Two items tested had an employee that was not paid at the correct rate, resulting in payroll in excess of approved rates of approximately $127. - One item tested did not have documentation in the personnel file. It was determined that this employee was paid at the correct rate. Cause: As updates are made, there is no review after the fact of the payroll changes and the amounts entered into the payroll system. Questioned Costs: The results of this noncompliance did not result in any questioned costs. Potential Effect: Disqualification from the Emergency Solutions Grant Program. Recommendation: The Organization should establish procedures to ensure wage approval letters are accurate and match payroll records, and all support for pay rates are maintained in personnel files. Responsible Official's Response: Management agrees with the finding and the recommendation.

Federal Program: Assistance listing number 14.231, Emergency Solutions Grant Program ? United States Department of Housing and Urban Development. Compliance Requirement: Allowable Costs Criteria: A properly designed system of internal control over compliance allows entities to meet those requirements set forth by the federal government. The Organization is required to ensure that costs are adequately documented. Condition: As part of the Organization's internal controls, all payroll changes are documented with a written letter to employees, a copy of which is maintained in the employee personnel file. Our audit results, which included the testing of twenty-five payroll transactions, indicated the following: - Two items tested had hourly rates paid that did not agree to the letters in the personnel files. These employees were paid the correct approved rates and the letters were determined to be incorrect. - Two items tested had an employee that was not paid at the correct rate, resulting in payroll in excess of approved rates of approximately $127. - One item tested did not have documentation in the personnel file. It was determined that this employee was paid at the correct rate. Cause: As updates are made, there is no review after the fact of the payroll changes and the amounts entered into the payroll system. Questioned Costs: The results of this noncompliance did not result in any questioned costs. Potential Effect: Disqualification from the Emergency Solutions Grant Program. Recommendation: The Organization should establish procedures to ensure wage approval letters are accurate and match payroll records, and all support for pay rates are maintained in personnel files. Responsible Official's Response: Management agrees with the finding and the recommendation.

Federal Program: Assistance listing number 14.231, Emergency Solutions Grant Program ? United States Department of Housing and Urban Development. Compliance Requirement: Allowable Costs Criteria: A properly designed system of internal control over compliance allows entities to meet those requirements set forth by the federal government. The Organization is required to ensure that costs are adequately documented. Condition: As part of the Organization's internal controls, all payroll changes are documented with a written letter to employees, a copy of which is maintained in the employee personnel file. Our audit results, which included the testing of twenty-five payroll transactions, indicated the following: - Two items tested had hourly rates paid that did not agree to the letters in the personnel files. These employees were paid the correct approved rates and the letters were determined to be incorrect. - Two items tested had an employee that was not paid at the correct rate, resulting in payroll in excess of approved rates of approximately $127. - One item tested did not have documentation in the personnel file. It was determined that this employee was paid at the correct rate. Cause: As updates are made, there is no review after the fact of the payroll changes and the amounts entered into the payroll system. Questioned Costs: The results of this noncompliance did not result in any questioned costs. Potential Effect: Disqualification from the Emergency Solutions Grant Program. Recommendation: The Organization should establish procedures to ensure wage approval letters are accurate and match payroll records, and all support for pay rates are maintained in personnel files. Responsible Official's Response: Management agrees with the finding and the recommendation.

Federal Program: Assistance listing number 14.231, Emergency Solutions Grant Program ? United States Department of Housing and Urban Development. Compliance Requirement: Allowable Costs Criteria: A properly designed system of internal control over compliance allows entities to meet those requirements set forth by the federal government. The Organization is required to ensure that costs are adequately documented. Condition: As part of the Organization's internal controls, all payroll changes are documented with a written letter to employees, a copy of which is maintained in the employee personnel file. Our audit results, which included the testing of twenty-five payroll transactions, indicated the following: - Two items tested had hourly rates paid that did not agree to the letters in the personnel files. These employees were paid the correct approved rates and the letters were determined to be incorrect. - Two items tested had an employee that was not paid at the correct rate, resulting in payroll in excess of approved rates of approximately $127. - One item tested did not have documentation in the personnel file. It was determined that this employee was paid at the correct rate. Cause: As updates are made, there is no review after the fact of the payroll changes and the amounts entered into the payroll system. Questioned Costs: The results of this noncompliance did not result in any questioned costs. Potential Effect: Disqualification from the Emergency Solutions Grant Program. Recommendation: The Organization should establish procedures to ensure wage approval letters are accurate and match payroll records, and all support for pay rates are maintained in personnel files. Responsible Official's Response: Management agrees with the finding and the recommendation.