Finding Text
Criteria: Pay rate approvel by supervisory personnel and documentation of that approval, was identified to be a key internal control over compliance. Condition: We reviewed a sample of 52 payroll expense transactions that were classified as program costs. Of the 52 transactions tested, 19 did not have appropriate documentation maintained for the approved pay rate. Effect: Inaccurate employee pay rates could result in an improper amount of payroll expense classified as program costs. Cause: Procedures were not in place to ensure that pay rate approval documentation was maintained in each employee file. Recommendation: We recommend the Foundation implement a process to ensure pay rates are approved by the supervisory personnel, and documentation of that approval is maintained in each employee file.