Finding Text
Criteria: Internal control procedures over payroll provide reasonable assurance regarding reduced
opportunity for fraud or error in recording payroll.
Condition: During internal controls testing for payroll, we noted that there are no formal policies
in place for approval of payroll before it is submitted.
Effect: Barium Springs Home for Children runs the risk of employees committing errors or potential
fraud with payroll.
Cause: Formal internal control procedures are not in place that would prevent or detect fraud.
Recommendation: We encourage the Organization to formalize internal control procedures for the payroll approval
process and to monitor those procedures. Views of responsible officials and planned corrective actions: Management of Barium Springs Home
for Children agrees with this finding. Management of Barium Springs Home for Children will
formalize internal control procedures related to approval of payroll prior to submission.
Management will monitor those procedures to ensure they are performed.