FAC Explorer

Finding 1103168 (2023-002)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2025-03-12
Audit: 345729
Organization: City of Alva (OK)
Auditor: Hspg & Associates PC

AI Summary

  • Core Issue: Two individuals have excessive access to payroll functions, including creating employees and changing pay rates.
  • Impacted Requirements: Lack of independent reviews for individual employee pay rates and missing approval forms for 11 employees.
  • Recommended Follow-Up: Implement a process for independent reviews of pay rates and ensure all pay rate changes have documented approvals.

Finding Text

Two individuals each have the ability to create a new employee, set up and make changes to employees’ direct deposit information, change pay rates, and make journal entries to record or adjust payroll. There are certain regular reviews of payroll expense amounts in total, but there are no documented reviews of the pay rates of individual employees by someone that does not have access to perform all activities within the City’s payroll process. In addition, there were 11 employees noted in our testing for which a signed pay rate approval form for the rate in effect for the selected pay period could not be provided.

Categories

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Other Findings in this Audit

  • 526726 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $66,827
45.310 Grants to States $198
21.027 Coronavirus State and Local Fiscal Recovery Funds $0