Audit 347407

2024 - 001 - Internal Controls over Payroll - Timesheet Approval- Significant Deficiency Condition: During our testing of controls over payroll disbursements, we observed that executive personnel have the ability to review and approve their own timesheets within the Paycom system. Once submitted, there is no additional review or approval process for their time entries. Criteria: Internal controls over allowable costs and allowable activities should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. Procedures should be in place to ensure supervisors or management approve all program staff timesheets. Cause: PCCDC has a review and approval process in place for all employees, except for executive staff. Effect: Without segregation of duties, there is a risk of management override, which can circumvent established control measures and increase the risk of fraud. This lack of control may lead to employees may be compensated for unworked hours, and employee time may be inaccurately allocated to the grant. Auditor's Recommendation: PCCDC should update its procedures to require prior approval of executive staff's electronic timesheets by both the finance director and housing director before payroll processing.

2024 - 001 - Internal Controls over Payroll - Timesheet Approval- Significant Deficiency Condition: During our testing of controls over payroll disbursements, we observed that executive personnel have the ability to review and approve their own timesheets within the Paycom system. Once submitted, there is no additional review or approval process for their time entries. Criteria: Internal controls over allowable costs and allowable activities should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. Procedures should be in place to ensure supervisors or management approve all program staff timesheets. Cause: PCCDC has a review and approval process in place for all employees, except for executive staff. Effect: Without segregation of duties, there is a risk of management override, which can circumvent established control measures and increase the risk of fraud. This lack of control may lead to employees may be compensated for unworked hours, and employee time may be inaccurately allocated to the grant. Auditor's Recommendation: PCCDC should update its procedures to require prior approval of executive staff's electronic timesheets by both the finance director and housing director before payroll processing.

2024 - 001 - Internal Controls over Payroll - Timesheet Approval- Significant Deficiency Condition: During our testing of controls over payroll disbursements, we observed that executive personnel have the ability to review and approve their own timesheets within the Paycom system. Once submitted, there is no additional review or approval process for their time entries. Criteria: Internal controls over allowable costs and allowable activities should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. Procedures should be in place to ensure supervisors or management approve all program staff timesheets. Cause: PCCDC has a review and approval process in place for all employees, except for executive staff. Effect: Without segregation of duties, there is a risk of management override, which can circumvent established control measures and increase the risk of fraud. This lack of control may lead to employees may be compensated for unworked hours, and employee time may be inaccurately allocated to the grant. Auditor's Recommendation: PCCDC should update its procedures to require prior approval of executive staff's electronic timesheets by both the finance director and housing director before payroll processing.

2024 - 001 - Internal Controls over Payroll - Timesheet Approval- Significant Deficiency Condition: During our testing of controls over payroll disbursements, we observed that executive personnel have the ability to review and approve their own timesheets within the Paycom system. Once submitted, there is no additional review or approval process for their time entries. Criteria: Internal controls over allowable costs and allowable activities should be properly designed to provide assurance of meeting compliance requirements and should operate effectively. Procedures should be in place to ensure supervisors or management approve all program staff timesheets. Cause: PCCDC has a review and approval process in place for all employees, except for executive staff. Effect: Without segregation of duties, there is a risk of management override, which can circumvent established control measures and increase the risk of fraud. This lack of control may lead to employees may be compensated for unworked hours, and employee time may be inaccurately allocated to the grant. Auditor's Recommendation: PCCDC should update its procedures to require prior approval of executive staff's electronic timesheets by both the finance director and housing director before payroll processing.