Finding 1216258 (2025-003)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-06-01

Audit: 402757

Organization: Pembroke Housing for the Elderly, Inc. (NH)

Auditor: LEONE MCDONNELL & ROBERTS P A

AI Summary

Core Issue: There is a significant deficiency in payroll controls due to inadequate review of time allocation sheets.
Impacted Requirements: Time sheets and allocation sheets must be accurately reviewed to ensure proper payroll allocations.
Recommended Follow-Up: Implement a sufficient and timely review process for allocation sheets to prevent errors in payroll charges.

Finding Text

Finding 2025-003: Significant deficiency for compliance and financial reporting Information on universe: Payroll control testing. Sample size: Five employees selected for internal control testing. Identification of repeat finding: Yes, 2024-005 Condition: Lack of adequate review of time allocation sheets to prevent errors in payroll allocations being charged to the property. Criteria: Time sheets and allocation sheets should be adequately reviewed to ensure 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

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

Other Findings in this Audit

1216255 2025-002

Material Weakness Repeat
1216256 2025-002

Material Weakness Repeat
1216257 2025-003

Material Weakness Repeat
1216259 2025-004

Material Weakness Repeat
1216260 2025-004

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.157	SUPPORTIVE HOUSING FOR THE ELDERLY	$4.82M