FAC Explorer

Finding 1219129 (2025-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-06-26
Audit: 405074
Organization: Kearsarge Elderly Housing, Inc. (NH)
Auditor: LEONE MCDONNELL & ROBERTS P A

AI Summary

  • Core Issue: Errors in payroll coding led to incorrect charges for two employees on a project.
  • Impacted Requirements: Payroll must be accurately allocated to projects to avoid ineligible wage charges.
  • Recommended Follow-Up: Implement a review procedure to ensure proper oversight of payroll allocations to projects.

Finding Text

Finding 2025-002: Compliance finding and material weakness over compliance and financial reporting Information on universe: Payroll control testing Sample Size: Five employees selected for internal control testing. Identification of repeat finding: No Condition: Errors in coding during payroll processing which resulted in two employee’s time to be erroneously charged to the project. Criteria: Payroll should be properly allocated to projects. Effect: Ineligible wages being charged to the project. Context: Auditor selected timesheets for payroll control testing. Cause: Lack of management oversight. Recommendation: A procedure be implemented to ensure that wages charged to the project are adequately reviewed and allowable.

Corrective Action Plan

Finding 2025-002 Plan: The Human Resource Director will work with Paylocity to find out why the mapping on the file they provide was incorrect. The Human Resource Director will have Paylocity (our third party payroll provider) make the necessary corrections on their end, so this will not happen again. Anticipated Completion Date: 12/31/2025 Contact: Jill Lesmerises, CFO

Categories

Internal Control / Segregation of Duties Eligibility Material Weakness Reporting

Other Findings in this Audit

  • 1219128 2025-002
    Material Weakness Repeat
  • 1219130 2025-004
    Material Weakness Repeat
  • 1219131 2025-004
    Material Weakness Repeat
  • 1219132 2025-003
    Material Weakness Repeat
  • 1219133 2025-003
    Material Weakness Repeat
  • 1219134 2025-005
    Material Weakness Repeat
  • 1219135 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $1.86M