Finding 1136382 (2023-002)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2025-05-08

AI Summary

  • Issue: Payments of $40,000 each were made to two employees for on-call/overtime without proper documentation.
  • Impact: This lack of documentation raises risks of undetected fraud, errors, and incomplete financial records.
  • Recommendation: Ensure all employee payments are documented and included in the payroll system to guarantee proper tax and deduction handling.

Finding Text

Criteria:Payments were made to employees without any proper documentation.Condition:Two employees were paid $40,000 each for on-call/overtime without proper documentation.Effect:Lack of proper documentation could result in undetected fraud, errors, and incomplete financial information.Cause:Lack of oversight by management and the Board.Recommendation:All employee payments should be documented as to the exact purpose of the payment and included in the payroll system to insure that applicable taxes and deductions are withheld.Views of Responsible Officials and Planned Corrective Actions:We agree with the auditors' comments, and the following action will be taken to improve the situation. The previous administration paid two maintenance employees for on-call/overtime without any documentation. Internal actions have been taken to prevent this from happening again.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 559939 2023-001
    Material Weakness
  • 559940 2023-002
    Material Weakness
  • 559941 2023-003
    Material Weakness
  • 559942 2023-004
    Material Weakness
  • 559943 2023-005
    Material Weakness
  • 559944 2023-006
    Material Weakness
  • 559945 2023-007
    Material Weakness
  • 1136381 2023-001
    Material Weakness
  • 1136383 2023-003
    Material Weakness
  • 1136384 2023-004
    Material Weakness
  • 1136385 2023-005
    Material Weakness
  • 1136386 2023-006
    Material Weakness
  • 1136387 2023-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.59M
14.850 Public Housing Operating Fund $566,741