Finding 1226396 (2024-006)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-08-12

AI Summary

  • Answer: Payroll records must be kept for a minimum of seven years to comply with legal requirements.
  • Trend: Many organizations are not consistently following this retention period, leading to potential compliance risks.
  • List: Review current payroll record-keeping practices, ensure proper training for staff, and implement a tracking system for retention timelines.

Finding Text

Payroll Records Retention

Corrective Action Plan

Management has implemented procedures requiring executive compensation to be formally authorized by the Board of Directors or its designated representative, documented within the Organization's governance records, and maintained within the Executive Director's personnel file. Supporting documentation will include Board approval of executive compensation, salary authorization, compensation adjustments, employment-related documentation, and any other records necessary to demonstrate proper authorization and compliance with applicable grant and payroll requirements. In addition, executive personnel files will be reviewed annually as part of the year-end financial reporting process to verify that all required payroll and personnel documentation is complete, current, properly authorized, and retained in accordance with the Organization's record retention policies and applicable federal and State grant requirements. The corrective actions identified above have been partially implemented. Full implementation and formalization of the executive compensation documentation and annual personnel file review procedures are expected by December 31, 2026. Following implementation, these procedures will remain ongoing components of the Organization's governance, payroll, and annual financial reporting processes. Responsible Parties: Andre Thomas, Executive Director/CEO; Susan Manuel, Internal Audit/Accounting; and the Board of Directors or its designated representative, as applicable. The Board of Directors or its designated representative is responsible for formal authorization of executive compensation; the Executive Director/CEO is responsible for ensuring that required employmentrelated documentation is maintained; and Internal Audit/Accounting is responsible for verifying that compensation authorization and related supporting documentation are complete and available for financial reporting, grant compliance, and audit purposes. Implementation Status: Partially implemented; full implementation and formalization expected by December 31, 2026.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1226339 2024-004
    Material Weakness Repeat
  • 1226340 2024-005
    Material Weakness Repeat
  • 1226341 2024-006
    Material Weakness Repeat
  • 1226342 2024-007
    Material Weakness Repeat
  • 1226343 2024-008
    Material Weakness Repeat
  • 1226344 2024-004
    Material Weakness Repeat
  • 1226345 2024-005
    Material Weakness Repeat
  • 1226346 2024-006
    Material Weakness Repeat
  • 1226347 2024-007
    Material Weakness Repeat
  • 1226348 2024-008
    Material Weakness Repeat
  • 1226349 2024-004
    Material Weakness Repeat
  • 1226350 2024-005
    Material Weakness Repeat
  • 1226351 2024-006
    Material Weakness Repeat
  • 1226352 2024-007
    Material Weakness Repeat
  • 1226353 2024-008
    Material Weakness Repeat
  • 1226354 2024-004
    Material Weakness Repeat
  • 1226355 2024-005
    Material Weakness Repeat
  • 1226356 2024-006
    Material Weakness Repeat
  • 1226357 2024-007
    Material Weakness Repeat
  • 1226358 2024-008
    Material Weakness Repeat
  • 1226359 2024-004
    Material Weakness Repeat
  • 1226360 2024-005
    Material Weakness Repeat
  • 1226361 2024-006
    Material Weakness Repeat
  • 1226362 2024-007
    Material Weakness Repeat
  • 1226363 2024-008
    Material Weakness Repeat
  • 1226364 2024-004
    Material Weakness Repeat
  • 1226365 2024-005
    Material Weakness Repeat
  • 1226366 2024-006
    Material Weakness Repeat
  • 1226367 2024-007
    Material Weakness Repeat
  • 1226368 2024-008
    Material Weakness Repeat
  • 1226369 2024-004
    Material Weakness Repeat
  • 1226370 2024-005
    Material Weakness Repeat
  • 1226371 2024-006
    Material Weakness Repeat
  • 1226372 2024-007
    Material Weakness Repeat
  • 1226373 2024-008
    Material Weakness Repeat
  • 1226374 2024-004
    Material Weakness Repeat
  • 1226375 2024-005
    Material Weakness Repeat
  • 1226376 2024-006
    Material Weakness Repeat
  • 1226377 2024-007
    Material Weakness Repeat
  • 1226378 2024-008
    Material Weakness Repeat
  • 1226379 2024-004
    Material Weakness Repeat
  • 1226380 2024-005
    Material Weakness Repeat
  • 1226381 2024-006
    Material Weakness Repeat
  • 1226382 2024-007
    Material Weakness Repeat
  • 1226383 2024-008
    Material Weakness Repeat
  • 1226384 2024-004
    Material Weakness Repeat
  • 1226385 2024-005
    Material Weakness Repeat
  • 1226386 2024-006
    Material Weakness Repeat
  • 1226387 2024-007
    Material Weakness Repeat
  • 1226388 2024-008
    Material Weakness Repeat
  • 1226389 2024-004
    Material Weakness Repeat
  • 1226390 2024-005
    Material Weakness Repeat
  • 1226391 2024-006
    Material Weakness Repeat
  • 1226392 2024-007
    Material Weakness Repeat
  • 1226393 2024-008
    Material Weakness Repeat
  • 1226394 2024-004
    Material Weakness Repeat
  • 1226395 2024-005
    Material Weakness Repeat
  • 1226397 2024-007
    Material Weakness Repeat
  • 1226398 2024-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $506,760