Finding 1160344 (2024-001)

Finding 2024 – 001: Timesheet Approval Condition: During our current year-end audit procedures, we noted that the employee timesheets were not approved by Department Heads. Criteria: A good system of internal controls would require all timesheets having approvals prior to processing payroll. Cause: The Village lacks a formal policy or enforcement mechanism requiring department approval of timesheets before payroll is processed. Effect: There is an increased risk of inaccurate payroll payments, such as overpayment or unapproved time. This could potentially result in financial loss or noncompliance with regulations. Recommendation: We recommend that timesheets be approved by Department Heads prior to payroll processing as a means of better internal controls. Corrective Action Plan: The Village Administrator, Treasurer, and staff will implement procedures to ensure timesheets are approved by Department Heads prior to processing payroll.