Finding Text
Finding 2025-003: Compliance finding and significant deficiency over compliance and financial reporting Information on universe: Payroll control testing Sample Size: Five employees selected for internal control testing. Identification of repeat finding: Yes, 2024-006 Condition: Lack of adequate reviews and approvals on time allocated and charged to the property due to calculation errors, using old allocation sheets and not receiving information timely. Criteria: Allocation sheets should be reviewed and approved for accuracy and completeness prior to payroll being run. Effect: The property could be charged the wrong amounts for payroll. Context: Auditor selected timesheets for payroll control testing. Cause: Lack of review and approvals. Recommendation: Allocation sheets and formulas should be reviewed in detail and approved prior to payroll being run.