U.S. Department of Agriculture; U.S. Department of Health and Human Services;
U.S. Department of the Treasury - Assistance Listing Numbers: 10.565; 10.568; 93.569; 21.020
During our testing of payroll transactions for the major federal programs tested, we were unable review approved timesheets for ...
U.S. Department of Agriculture; U.S. Department of Health and Human Services;
U.S. Department of the Treasury - Assistance Listing Numbers: 10.565; 10.568; 93.569; 21.020
During our testing of payroll transactions for the major federal programs tested, we were unable review approved timesheets for any employees with payroll periods tested prior to April 2, 2022. It was noted there were proper approvals in place for the transactions selected that were processed by the new payroll provider.
Recommendation: The Organization should ensure when there are changes in the Organizations service providers, there are procedures in place to ensure all necessary documentation is retained to support the controls in place for federal spending.
Explanation of disagreement with audit finding: There is no disagreement with the audit finding.
Action planned/taken in response to finding:
A comprehensive data migration plan must be developed, outlining steps to securely transfer data from the old system to the new one while safeguarding the integrity and confidentiality of sensitive information. During the transfer process, it is crucial to verify the completeness and accuracy of all transferred documentation through audits or spot-checks. Clear communication with employees about the transition, including any changes in payroll processes or documentation requirements, is essential to maintain transparency and trust.
Training should be provided to relevant staff members on how to use the new payroll system and adhere to organizational policies for maintaining documentation. Compliance with regulatory requirements regarding document retention, data security, and privacy must be assured by the new payroll service provider. Regular audits of payroll processes and documentation should be conducted to ensure ongoing compliance and identify areas for improvement.
Establishing secure storage and backup procedures for payroll documentation is paramount to ensure records remain accessible and protected from loss or unauthorized access. Periodic review and updates of procedures for document retention and payroll processing are necessary to adapt to changes in regulations, technology, or business practices. By following these steps, the organization can ensure a smooth transition between payroll service providers while maintaining the integrity and effectiveness of its controls and compliance efforts.
Name(s) of the contact person(s) responsible for corrective action: Dawn Godshall, Executive Director
Planned completion date for corrective action plan: The new Payroll provider, iSolve, was implemented on April 2, 2022.