Finding Text
Agencies: Corporation for National Community Service and U.S. Department of Health and Human Services
Federal Program: All federal awards.
Criteria: Personnel files should be maintained for every employee and include documentation such as Form I- 9, termination letters, enrollment, benefit waiver forms, documentation of pay rate changes, etc.
Condition: We identified several instances in which personnel file were missing certain documentation, including pay rates, merit increases, hire dates, etc.
Context: Out of a sample of ten employee files, ten files were missing information, including support for current wage information. Sample was not statistically valid.
Cause: As a result of turnover in human resources and the finance department, a complete evaluation of personnel records has not been performed and personnel files have not been updated for the most current information.
Questions Costs: No questioned costs were identified.
Effect: Our audit procedures uncovered no instances in which personnel were not paid the correct wage as all merit increases were verbally approved by the President and Chief Executive Officer. However, incomplete personnel files can lead to errors in interpreting benefits and miscommunication with employees as well as errors in payroll and government grant record keeping.
Recommendation: We recommend personnel files be reviewed for completeness, any missing documentation should be replaced immediately, and proper documentation should be maintained going forward.
Views of Responsible Officials: Management plans to perform a review of all personnel files to ensure applicable files are complete and have up to date information.