ecommendation: We recommend management implement and enforce standardized payroll controls to ensure time punch cards or equivalent timekeeping documentation are completed, reviewed, and retained. Management should also ensure employee pay rates, whether salary or hourly, are authorized, supported in personnel files, and agree to payroll system rates. Additionally, management should ensure hours are accurately applied between regular and overtime categories, and that supporting payroll documentation is retained in accordance with the Authority’s record retention policy and applicable requirements. Further internal controls have been implemented through the migration to iSolved software as part of MRI implementation for both housing software and fee accounting services. These additional changes are as follows: • Each employee must review and verify their entire timecard in the system after the pay period and prior to payroll processing. The supervisor must subsequently verify the timecard after the employee has done so. The timecard and these verifications are retained in the automated system indefinitely. • If an employee punches outside the geofenced work location, the supervisor must enter a note in the automated system explaining why this occurred and whether the punch was allowed within policy or not. Additionally, the geolocation of the punch is retained by the system indefinitely. • If an employee misses a punch, the supervisor must be the one to enter the correction and must enter a note regarding the reason for the error. These records are retained in the system indefinitely. • After payroll records are verified by the employee and supervisor, the Executive Director prints timecard reports for all employees and attaches supporting documentation for any extraordinary pay events, such as a pay rate change, mileage reimbursement, Medicare stipend, bereavement leave, etc. • These reports and documentation are forwarded to the Compliance Officer who reviews all records in accordance with a payroll processing checklist. This checklist ensures the supervisor has completed all steps listed above, and that all required supporting documentation are included with the timecard record and reflect correctly in the pre-payment pay register. • After Compliance Officer reviews pre-payment records, the Financial Specialist completes a second review using a second checklist, verifying all direct deposit information is correct, withholdings and benefits reflect correctly, and supporting documentation is included. Once all records are verified, the Financial Specialist executes payroll. • After Payroll is executed, records are returned to supervisor to file all documents back in each employee folder for retention with the employee’s permanent employee file. Corrective Action: Upon taking the position, and prior to this audit, the new Executive Director implemented an automated timekeeping system, eliminating the complicated hand-punch clock system. This first step eliminated hours of follow-up work needed by the bookkeeper. The new system required staff to be within a geo-fenced area when punching and provides management with a mapped location for every punch. Responsible Party: Executive Director Anticipated Completion Date: Complete