Finding 46074 (2022-020)

SECTION III ? FEDERAL AWARD FINDINGS AND QUESTIONED COST 2022-02 ? Controls surrounding payroll Criteria: The District is responsible for establishing and following controls that prevent, detect and correct errors in a timely manner. Condition and Context: During the course of the audit, we identified errors in controls surrounding payroll that was not identified and rectified by the district. The errors resulted in one employee being overpaid and another employee being underpaid. A technology error led to one employee being underpaid, and a timecard error led to another employee being overpaid. Effect: Error in payments of wages that did not match a timecard and an employee?s contracted rate. Cause: Lack of review of internal controls surrounding payroll, including reviewing timecards and the MUNIS system for payroll discrepancies. Recommendation: Secondary review of payroll internal controls in conjunction with the normal payroll process, ensuring that employees are paid the appropriate amount each pay period. Views of Responsible Officials and Planned Corrective Actions: The District office will review internal controls surrounding payroll to ensure that pay to employees is in conjunction with contracted rates and weekly timecards.