Finding Text
Condition: The internal controls over the timesheet approval process were not operating properly. As a result, employee timesheets were not approved by a supervisor within a reasonable timeframe in 15 of the 178 timesheets selected for testing and 1 of the 178 timesheets lacked a date for the supervisor signoff. Timesheets were also not signed by the employee within a reasonable timeframe in 1 of the 178 timesheets selected for testing.
Criteria: The Organization’s policy requires sign off on all timesheets by the employee preparing the timesheet as well as documented approval by the supervisor. Proper functioning internal controls would result in the organization having consistent sign off and approval on all employee timesheets before time recorded is paid out.
Cause: The system of controls over the timesheet approval process did not operate properly to allow for the organization to have consistent procedures in place to allow for employee sign off and supervisor approval.
Effect: The Organization was not in compliance with their internal policy regarding timesheet preparation and approval.
Recommendation: The Organization should review the current timesheet preparation and approval process to allow for a consistent procedure to be put in place and followed throughout the year. All employees and supervisors should be adequately trained on this policy.