Supportive Housing for Persons With Disabilities – Assistance Listing No. 14.181
Criteria or Specific Requirement: According to the client's internal control over payroll disbursements, hourly employees must maintain timesheets which are approved and signed by the property manager.
Condition: Upon performing testing over payroll disbursements, we noted that there was no approval of the timesheet for the payroll disbursements tested.
Questioned costs: None
Context: The timesheet for 4 out of 4 payroll disbursements tested was not properly approved by the property manager.
Cause: Turnover of property manager at the property management company and weaknesses in internal controls over payroll disbursements.
Effect: There is no evidence of proper approval of payroll disbursement.
Repeat Finding: Yes
Recommendation: We recommend that management strengthen controls over review of payroll.
Views of Responsible Officials: There is no disagreement with the audit finding.
Action taken in response to finding: Although other controls and reviews around compensation help safeguard and mitigate compensation errors, the property manager will ensure that all time sheets are properly approved prior to payment as a first line of internal controls.
Name of the contact person responsible for corrective action: Angela Westwood, CFO
Planned completion date for corrective action plan: May 30, 2024.