Audit 376842

Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: Salaries and wages charged to government grants must be based on records that accurately reflect the work performed. These records must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Additionally, time and effort reporting must be reviewed and approved by a responsible official. Condition: During our testing of payroll processes, we noted that employee timecards were not consistently reviewed or approved by supervisors prior to payroll processing. Of the 29 employees tested requiring timecards, 12 of the sampled timecards lacked documented supervisory approval. Context: Wheeler Clinic, Inc.’s policy requires supervisory approval of timecards, however due to delinquent approvals by supervisors, timecards were processed without approval. Effect: Hourly employees were compensated for hours that were unverified by a direct supervisor and may have been charged to government grants. Cause: There was an override of controls that allowed for processing of the payroll register without approved timecards. Repeat Finding: No Recommendation: We recommend management configure the payroll system to prevent processing of timecards that are not approved by the supervisor. Management’s Response: Wheeler Clinic, Inc. has reviewed the current approval processes. As of October 9, 2025, Wheeler Clinic, Inc. has formally implemented a process change removing any universal approval practices effective immediately. Wheeler Clinic, Inc. has also implemented a process that requires all managers/supervisors to authorize timesheets by a designated time on the subsequent Monday of the payroll cycle prior to payroll processing in order for payroll to be processed.