FAC Explorer

Finding 1179604 (2023-012)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2026-03-16
Audit: 391997
Organization: Urban Development Corporation (IL)
Auditor: ALEXANDER MANNIE & COMPANY PC

AI Summary

  • Core Issue: Payroll for 1/04/2024 was processed manually and not reported to ADP, leading to unreported payroll taxes.
  • Impacted Requirements: This affects compliance with Federal and State Employment/Unemployment tax return filings for Q1 2024.
  • Recommended Follow-Up: Ensure timely transmission of payroll data to ADP and make necessary tax deposits to avoid penalties.

Finding Text

During our testing of the Project's accrued payroll & taxes for the year ended December 31, 2023, for the gross payroll of $10,370.46 and payroll taxes of $793.36, we noted that payroll was processed at net pay on 1/4/2024 and that employees were given manual payroll checks. Payroll was not transmitted to ADP, and payroll tax deposits were not made. Therefore, the 1/04/2024 payroll is unreported in the 1st Quarter 2024 filing of required Federal and State Employment/Unemployment tax returns.

Corrective Action Plan

The Project has procedures in place to process payroll. The Project will review procedures to ensure ● filing deadlines are scheduled for each operating year in advance ● designated individuals are responsible for preparing, reviewing, and transmitting payroll data to the outside payroll agent for processing ● outside payroll agent processes payroll and payroll tax returns properly and timely ● payroll obligations are paid timely ● payroll reports are timely received for each payroll period ● reconciliations are prepared each period

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1179586 2023-001
    Material Weakness Repeat
  • 1179587 2023-001
    Material Weakness Repeat
  • 1179588 2023-002
    Material Weakness Repeat
  • 1179589 2023-002
    Material Weakness Repeat
  • 1179590 2023-003
    Material Weakness Repeat
  • 1179591 2023-004
    Material Weakness Repeat
  • 1179592 2023-005
    Material Weakness Repeat
  • 1179593 2023-006
    Material Weakness Repeat
  • 1179594 2023-007
    Material Weakness Repeat
  • 1179595 2023-007
    Material Weakness Repeat
  • 1179596 2023-008
    Material Weakness Repeat
  • 1179597 2023-008
    Material Weakness Repeat
  • 1179598 2023-009
    Material Weakness Repeat
  • 1179599 2023-009
    Material Weakness Repeat
  • 1179600 2023-010
    Material Weakness Repeat
  • 1179601 2023-011
    Material Weakness Repeat
  • 1179602 2023-011
    Material Weakness Repeat
  • 1179603 2023-012
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $2.36M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $1.03M