Finding Number: 2025-002 Planned Corrective Action: During testing of payroll transactions, the auditor identified that one or more payroll submissions lacked documented email approval from the Director of Finance prior to submission, as required by internal control policy. Although approval was verbally or electronically obtained, documentation was not consistently retained in accordance with policy. The organization has strengthened documentation procedures moving forward. The lack of documented approval occurred due to: Inconsistent retention of email approvals, and/or Staff misunderstanding of documentation requirements, and/or o Accounting team faced significant turnover with personnel completing payroll tasks Payroll deadlines not being met, consistently, by organization’s management team The organization has implemented the following corrective actions: Re-trained payroll and finance staff on the requirement that all payroll submissions must receive documented email approval from the Director of Finance prior to processing. Implemented a standardized payroll submission checklist requiring confirmation of email approval before processing. Established a centralized electronic folder where all payroll approval emails must be saved and retained. Required organization’s management team to adhere to payroll deadlines set by Accounting Team or disciplinary actions will be taken. The Senior Accountant will perform quarterly internal spot checks of payroll files to verify documentation is complete. The Director of Finance will review and sign off monthly on a payroll approval log confirming compliance. Failure to obtain documented approval will result in payroll submission delay until documentation is secured. Anticipated Completion Date: 08/31/2026 Responsible Contact Person: Dr. Brittany Lee