FAC Explorer

Finding 380640 (2022-004)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-03-15
Audit: 295391
Organization: Wicomico County Housing Authority (MD)
Auditor: Sb & Company LLC

AI Summary

  • Core Issue: Inadequate controls over the payroll process led to timesheets not being reviewed or approved.
  • Impacted Requirements: Hourly employees' timesheets lack necessary supervisor review, risking inaccurate payroll reporting.
  • Recommended Follow-Up: Enhance internal controls to ensure all timesheets receive proper review and approval from supervisors.

Finding Text

Criteria: Wicomico County Housing Authority (the "Authority") should maintain appropriate controls over the payroll process to prevent or detect inaccurate or unsupported costs. Condition: The Authority's controls over the payroll process were not properly implemented, resulting in employees' timesheets not being reviewed or approved. Context: The Authority did not obtain a supervisor's review and approval of timesheets for hourly employees. Effect: Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for employees paid a salary or wage that is unapproved by the Board. Cause: The Authority's internal controls over the payroll process were not appropriately implemented surrounding timesheet review and approval. Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure every timesheet is reviewed and approved by the hourly employee's supervisor.

Corrective Action Plan

Recommendation: The Authority should review and enhance its internal controls to ensure every timesheet is reviewed and approved by the hourly employee's supervisor. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will review and enhance our policies and procedures over payroll processing, to ensure all timesheets have visual approval by supervisor, and employee files obtain copy of the annual board approved salary worksheet. Name(s) of the contact person(s) responsible for corrective action: Don Bibb, Executive Director Planned completion date for corrective action plan: December 31, 2023

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 380637 2022-001
    -
  • 380638 2022-002
    Material Weakness Repeat
  • 380639 2022-003
    Material Weakness Repeat
  • 380641 2022-001
    -
  • 380642 2022-004
    Significant Deficiency
  • 380643 2022-001
    -
  • 380644 2022-004
    Significant Deficiency
  • 957079 2022-001
    -
  • 957080 2022-002
    Material Weakness Repeat
  • 957081 2022-003
    Material Weakness Repeat
  • 957082 2022-004
    Significant Deficiency Repeat
  • 957083 2022-001
    -
  • 957084 2022-004
    Significant Deficiency
  • 957085 2022-001
    -
  • 957086 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.80M
14.872 Public Housing Capital Fund $547,255
14.850 Public and Indian Housing $320,300