Finding Text
Criteria: Payroll payments are based on the timecard submitted for work performed, and the approved
rate of pay the employee is entitled to. Time and effort requirements are outlined in 2 CFR 200.430.
Condition: In testing payroll transactions, there were numerous instances of inadequate documentation
for payroll. There were missing approved pay rate forms and lack of supporting documentation for
stipends and differentials paid. There were timecards submitted for support of the payroll which were
unapproved, mathematically incorrect, and/or which did not agree to the payroll paid.
Cause: The lack of formal processes and procedures for payroll documentation paired with the limited
oversight of payroll processing resulted in insufficient supporting information for payroll payments made.
Effect or potential effect: Internal control over the financial activities of the YWCA New Hampshire is
weakened. Failure to maintain accurate supporting documentation for payroll increases the risk
employees are over- or under- paid for work performed.
Questioned costs: The questioned costs are unknown, as the amount of payroll that could have been
inappropriately charged is unable to be recalculated at this time.
Context: The YWCA New Hampshire expended in excess of $750,000 in federal awards and assistance
during the year ending June 30, 2023 requiring a compliance audit in accordance with the Uniform
Guidance. The organization has not required a compliance audit in previous years and management was
not aware of the various requirements of the Uniform Guidance. The payroll deficiencies were a systemic
problem noted during the audit.
Recommendation: Policies and procedures surrounding payroll should be reviewed with all relevant
personnel. Rate of pay forms should be maintained for each employee, signed and approved, and updated
for any rate changes. Formal pay rates should be established for all shift differentials and stipends.
Timecards should be appropriately completed each week, approved, and reviewed during the payroll
processing.
Views of Responsible Officials: YWCA New Hampshire’s management concurs with this audit finding.