Finding Text
2023-002 – Timesheets Not Properly Reviewed and Approved by Supervisor
Legal Services Corporation
Basic Field Grant
Assistance Listing No. – 09.643030
LSC Regulation Code – 45 C.F.R. Part 1635
Condition: During our audit, we noted several instances where timesheets were not being properly
reviewed and approved by the employees’ supervisor.
Criteria: LSC Financial Guide states: “Recipients must maintain time and attendance records for each
employee that provide reasonable assurance that the recorded hours for payroll are authorized,
complete and accurate. Further, recipients must maintain documentation that indicate employees’ time
and attendance records have been reviewed and approved by supervisors (or alternative personnel in a
managerial role).”
Cause: MALS did not follow internal control policies in place.
Effect: While employees were paid appropriately based on hours reported, internal control policies were
not followed to review timesheets in order to verify employees’ attendance and number of hours worked
for the related pay period.
Context: A sample of 20 payroll transactions were selected for testing. 7 out of the 20 timesheets
selected lacked documentation of approval by the employees’ supervisor.
Recommendation: We recommend MALS follow the policies and procedures in place.
Management’s Response: See management’s corrective action plan.