Finding 26120 (2022-002)

Each payroll batch, which includes employee time charged to the CVA program, is prepared by the Center?s payroll clerk and then secondarily reviewed by the director of finance. However, the director of finance does not formally evidence the review by signing and dating the payroll documents.Our evaluation is based on conditions present during the year ended June 30, 2022 but these conditions may have been present in previous reporting periods.The Center is not able to evidence internal control activities relevant to charging employee time to the CVA program. By not formally documenting the secondary payroll review, the inherent risk of an error or fraud is higher because (a) the control activities may inadvertently not be performed or (b) the control activities are more susceptible to intentional override.The director of finance should evidence their review of the payroll batch by signing and dating the Intuit confirmation report which is filed on top of the payroll report packet.