Finding Text
Condition: While performing audit procedures related to payroll, we were unable to reconcile what was reported in the general ledger as salaries and wages to the quarterly payroll filings. Criteria: Salary and wages should be recorded as such in the accounting system to ensure proper reporting to grantors and for accurate reporting for federal and state payroll filings. Cause: Salary and wages were posted to other expense accounts in the accounting system instead of salary and wage expenses. Effect: The financial statements do not accurately reflect the correct balance of salary and wages and does not reconcile to the federal and state payroll filings. In addition, the salary and wages reported to grantors may not be reported accurately. Recommendations: We recommend that all salary and wages be posted to the correct general ledger expense account so that federal and state payroll filings and grant reporting are properly reported.