Finding Text
Federal Agency: Department of Housing and Urban Development
Federal Program Name: Supportive Housing for Persons with Disabilities
Listing Number: 14.181
Award Period: 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: According to the client's internal control over payroll disbursements, hourly employees must maintain timesheets which are approved and signed by the property manager.
Condition: Upon performing testing over payroll disbursements, we noted that there was no approval
of the timesheets for payroll disbursements tested.
Questioned costs: None
Context: The timesheet for 5 out of 5 payroll disbursements tested was not properly approved by the
property manager.
Cause: Turnover of property manager at the property management company and weaknesses in internal controls over payroll disbursements.
Effect: There is no evidence of proper approval of payroll disbursement.
Repeat Finding: Yes
Recommendation: We recommend that management strengthen controls over review of payroll.
Views of Responsible Officials: There is no disagreement with the audit finding.