Finding Text
#2024‐001 – Significant Deficiency – Authorization and Approval Procedural Controls
Edward Byrne Memorial Justice Assistance Grant Program ALN #16.738
Criteria
Internal controls are intended to prevent errors and irregularities, identify problems and ensure that corrective
action is taken. A member of Association management should review timesheets and payroll records as the
foundation of authorization and approval procedures over payroll.
Condition
During the course of the audit, it was determined that management did not consistently perform a review of
timesheets completed by their subordinates.
Cause
The cause is human error.
Effect
The potential effects of not authorizing payroll records could include an over or understatement of salary expenses.
Questioned Costs
None
Perspective Information
The finding noted related to test work performed for four (4) pay periods, with six (6) employees selected per pay
period. No approval was noted on a total of three (3) employee timesheets tested across two (2) of the pay periods
selected.
Identification as a repeat finding
There was no similar finding in the prior year.
Recommendation
We recommend the Executive Director review timesheets for every employee for each pay period, and sign off
indicating this review has occurred.
View of Responsible Official
After reviewing the recommendation from Hamilton & Musser, the Association agrees that the Executive Director
will carefully review and sign off on time sheets for each employee during every pay period to confirm the review.
This has and will continue to be the custom and practice of the Association.