Audit 401492

2025-001 – Payroll Timecard Approvals – PHIG and WIC Programs Federal Program: (“WIC”) Special Supplemental Food Program for Women, Infants, and Children Federal Assistance Listing Number: 10.557 Pass-Through Agency: Texas Health and Human Services Commission Pass-Through Grantor Number: HHS000805600001 Federal Program: Public Health Infrastructure Grant (“PHIG”) – CDC Collaboration with Academia to Strengthen Public Health Federal Assistance Listing Number: 93.967 Pass-Through Agency: Texas Department of State Health Services Pass-Through Grantor Number: HHS001313000001 Criteria: Per the District’s Pay and Compensation Policy, Supervisors and/or Directors are required to approve employee time in Paycom no later than 10 a.m. on the Monday prior to Human Resources processing payroll. Paycom is the District’s electronic payroll and timekeeping system used to record employee hours and facilitate supervisor approval of timecards before payroll processing. Timely approval of timecards is an internal control designed to ensure accurate and allowable payroll charges to federal awards, consistent with 2 CFR §200.430 and applicable cost principles. Condition: During testing of payroll timecards:  PHIG grant: 3 employees across 4 payroll periods had timecard hours charged to grant not approved by the Supervisor/Director in Paycom.  WIC grant: 3 employees from a sample of 40 had timecard hours charged to grant not approved by the Supervisor/Director in Paycom. Cause: Supervisors/Directors did not consistently follow the District’s payroll approval policy, resulting in deviations from the required approval workflow. Effect: Payroll hours charged to the federal programs may not have been properly reviewed for accuracy and allowability prior to processing. This represents a control deficiency and a risk of noncompliance with federal award requirements. NORTHEAST TEXAS PUBLIC HEALTH DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2025 Recommendation: Management should reinforce the timecard approval process and ensure supervisors review and approve all employee timecards in Paycom prior to payroll processing. Additional monitoring procedures may include periodic internal audits or system alerts to prevent recurrence. Questioned Costs: Based on review of the timecards, no dollar amounts were questioned, as all hours appear reasonable and were properly supported. Total Questioned Costs: $0