Audit 408691

2025-002 - Internal Control over Payroll Timesheet Approval (Material Weakness) Criteria or Specific Requirements: Payroll processing requires that employee timesheets be complete, accurate, and approved only after the end of the respective pay period. Management is responsible for establishing and maintaining effective internal control over payroll to ensure accurate financial reporting and payroll disbursements. Condition: HRCSF does not have effective controls over the approval of employee timesheets. Audit testing revealed that timesheets were approved prior to the end of the respective pay period, indicating that recorded time may not have been fully reviewed. Cause: HRCSF has not established controls to ensure that timesheets are approved only after all time has been recorded for the pay period. Effect: Premature approval of timesheets increases the risk of payroll errors, including inaccurate payment amounts and misstatement of payroll-related balances in the financial statements. Auditor's Recommendation: Management should implement policies and procedures to ensure that timesheets are approved only after the completion of the respective pay period. Adequate review and supporting documentation should be maintained for all payroll entries. Additionally, monitoring controls should be strengthened to reduce the risk of payroll errors and to ensure accurate and reliable payroll processing.

2025-003 - Compliance with Reporting Requirements of OMB-Single Audit (Significant Deficiency) Criteria or Specific Requirements: In accordance with Uniform Guidance 2 CFR 200.512(a), recipients must submit a data collection form that states whether the audit was completed in accordance with this part and provides information about the auditee, its federal programs, and the results of the audit submitted within the earlier of 30 days after the receipt of the audit report or nine months after the end of the audit period. Conditions: The data collection form for the year ended June 30, 2025, was not filed by the deadline of March 31, 2026, to the Federal Audit Clearinghouse. Cause: All required information required for the Single Audit was not available to complete within the required timeframe. Effect: HRCSF is not in compliance with Uniform Guidance 2 CFR 200.512(a). Auditor's Recommendation: We recommend that HRCSF should maintain documentation to support the appropriate and timely submission of the single audit (SF-SAC form).