Finding Text
Payroll - Review of Timesheets Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Center for Disease Control and Prevention: Injury Prevention and Control Research and Statement and Community Based Programs. Assistance Listing Number: 93.136 Pass-Through Agencies: N/A Pass-Through Numbers: N/A Award Periods: Various: September 30, 2022 through September 29, 2027 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: Under allowable cost/cost principles, an organization in receipt of federal funding is required to have a system of controls in place to safeguard assets and ensure that only allowable costs are charged to federal programs. 2 CFR Part 200 states that charges to awards for salaries and wages are to be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated. Condition: In testing a sample of 40 payroll items, we tested 3 of the Chief Executive Officers. The Chief Executive Officer’s timesheets were not reviewed and approved by another individual. Questioned Costs: None. Context: Payroll timesheets are not being properly reviewed on a timely basis for all employees. Cause: Payroll timesheets are not being properly reviewed on a timely basis by an individual other than the Chief Executive Officer. Effect: Inaccurate payroll costs may be charged to federal programs. Repeat Finding: This is a not repeat finding. Recommendation: Policies and procedures over the processing of payroll transactions should include timely review and approval of the payroll transactions through proper approval of the timesheets by an individual other than the employee themselves for all employees. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding. Action taken in response to finding: CFO will be approving CEO timesheets Name(s) of the contact person(s) responsible for corrective action: Mary Lubben, CFO Planned completion date for corrective action plan: The corrective action plan detailed above is being implemented by August 31, 2026.