Finding Text
Finding 2023-010 Payroll Review
21.027 - Coronavirus State and Local Fiscal Recovery Funds
Compliance Requirement: Activities Allowed and Unallowed
Type of Finding: Internal Control Deficiency
Condition: The City does not have a procedure in place to review and approve payroll after it is entered but before the payroll is processed.
Criteria: Federal expenditures require internal controls over processes to ensure federal funds are not misused.
Cause: The City has a tight turnaround time for payroll which makes a pre-issuance review difficult.
Effect: The City may process checks that are not legitimate.
Perspective: RBT noted that out of 5 payroll reports tested, 5 were not reviewed and approved prior to being processed.
Repeat Finding: Not a repeat finding.
Recommendation: RBT recommends that the City implement a procedure to review and approve payroll after it is entered but before the payroll is processed.
Auditee's Response: See corrective action plan.