DEPARTMENT OF THE TREASURY 2024-001 During our testing of payroll transactions for the major federal program, we were unable review the internal control of approved timesheets for any part time employees and seasonal employees with payroll periods selected for testing through September 2024. The Organization changed payroll service providers in September 2024 and could no longer access the timesheets requested. Recommendation: The Organization should ensure when there are changes in the Organizations service providers, there are procedures in place to ensure all necessary documentation is retained to support the controls in place for federal spending. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Immediate Action Completed: We have communicated to our People Operations team the requirement to maintain access to all payroll documentation, including approved timesheets for part-time and seasonal employees, to support federal spending controls. Policy Implementation: We have established procedures requiring that before any payroll service provider changes are finalized, the Finance and People Operations teams must verify that all necessary historical documentation will remain accessible for audit and compliance purposes, including but not limited to approved timesheets, payroll registers, and supporting documentation for all employee categories. Training and Communication: All relevant staff members have been trained on the new procedures and understand their responsibilities for maintaining documentation access during service provider transitions. Name(s) of the contact person(s) responsible for corrective action: Amy Chen, VP, Finance Planned completion date for corrective action plan: 9/10/2025 The planned corrective action will be completed by 9/10/2025.