FAC Explorer

Finding 1216252 (2025-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-06-01
Audit: 402751
Organization: Newbury Elderly Housing, Inc. (NH)
Auditor: LEONE MCDONNELL & ROBERTS P A

AI Summary

  • Core Issue: There is a significant deficiency in the review process for payroll allocation sheets, leading to errors.
  • Impacted Requirements: Allocation sheets must be reviewed for accuracy and completeness to ensure proper payroll charges.
  • Recommended Follow-Up: Implement a timely and thorough review process for allocation sheets to prevent future errors.

Finding Text

Finding 2025-003: Significant deficiency for compliance and financial reporting Information on universe: Payroll allocation testing Sample size: Three employees selected for internal control testing. Identification of repeat finding: Yes, 2024-007 Condition: Lack of adequate review of time allocation sheets to prevent errors in payroll allocations being charged to the property. Criteria: Allocation sheets should be reviewed for accuracy and completeness Effect: Potential for improper allocations being charged to the property. Context: Auditor selected timesheets and allocation sheets for payroll testing. There were errors on the allocation sheets as well as the wrong sheet being used due to late submission. Cause: Lack of adequate and timely review of allocation sheets resulting in the allocation sheets not accurately reflecting what was charged to the property. Recommendation: Sufficient and timely review of allocation sheets should be performed to prevent errors between what is allocated and what is charged to the property.

Corrective Action Plan

Finding 2025-003 Plan: The Director of Affordable Housing will ensure that her staff submit allocation sheets each pay period. The Director will review the allocation sheets for accuracy, and the Director will approve the allocation sheets before submitting to Payroll for processing. The Chief Operating Officer will ensure that the Director of Affordable Housing submits an allocation sheet each pay period. The COO will check the allocation sheet for accuracy before approving the allocation sheet and submitting to Payroll for processing. The allocation sheet submitted will include detailed information on the job duties performed during that pay period by the staff member submitting the allocation sheet. Additionally, the Director of Affordable Housing will document job duties for each position in the department. Anticipated Completion Date: 7/1/2026 Contact: Jill Lesmerises, CFO

Categories

Allowable Costs / Cost Principles Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1216243 2025-005
    Material Weakness Repeat
  • 1216244 2025-002
    Material Weakness Repeat
  • 1216245 2025-005
    Material Weakness Repeat
  • 1216246 2025-002
    Material Weakness Repeat
  • 1216247 2025-003
    Material Weakness Repeat
  • 1216248 2025-004
    Material Weakness Repeat
  • 1216249 2025-004
    Material Weakness Repeat
  • 1216250 2025-004
    Material Weakness Repeat
  • 1216251 2025-003
    Material Weakness Repeat
  • 1216253 2025-005
    Material Weakness Repeat
  • 1216254 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $338,825