FAC Explorer

Finding 499500 (2023-003)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 322360
Organization: Wicomico County Housing Authority (MD)
Auditor: Sb & Company LLC

AI Summary

  • Core Issue: The Authority lacks proper controls over payroll, leading to unreviewed and unapproved timesheets for hourly employees.
  • Impacted Requirements: This finding highlights significant deficiencies in internal controls and noncompliance with payroll documentation standards.
  • Recommended Follow-up: Enhance internal controls to ensure all timesheets are reviewed and approved by supervisors before processing payroll.

Finding Text

Finding 2023-003: Payroll Documentation (Significant Deficiency) Federal Program: All Programs Type of Finding: Internal control Significant Deficiency and Noncompliance Repeat Finding: Yes Criteria: Wicomico County Housing Authority (the "Authority") should maintain appropriate controls over the payroll process to prevent or detect inaccurate or unsupported costs. Condition: The Authority's controls over the payroll process were not properly implemented, resulting in employees' timesheets not being reviewed or approved. Context: The Authority did not obtain a supervisor's review and approval of timesheets for hourly employees. Effect: Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for employees paid a salary or wage that is unapproved by the Board. Cause: The Authority's internal controls over the payroll process were not appropriately implemented surrounding timesheet review and approval. Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure every timesheet is reviewed and approved by the hourly employee's supervisor. Management’s Response and Corrective Action Plan See schedule of corrective action plan.

Corrective Action Plan

Recommendation: The Authority should review and enhance its internal controls to ensure every timesheet is reviewed and approved by the hourly employee's supervisor. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will review and enhance our policies and procedures over payroll processing, to ensure all timesheets have visual approval by supervisor, and employee files obtain copy of the annual board approved salary worksheet. Name(s) of the contact person(s) responsible for corrective action: Don Bibb, Executive Director Planned completion date for corrective action plan: December 31, 2024

Categories

Allowable Costs / Cost Principles Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 499498 2023-001
    Material Weakness Repeat
  • 499499 2023-002
    Material Weakness Repeat
  • 499501 2023-003
    Significant Deficiency Repeat
  • 499502 2023-003
    Significant Deficiency Repeat
  • 499503 2023-003
    Significant Deficiency Repeat
  • 499504 2023-001
    Material Weakness Repeat
  • 499505 2023-002
    Material Weakness Repeat
  • 1075940 2023-001
    Material Weakness Repeat
  • 1075941 2023-002
    Material Weakness Repeat
  • 1075942 2023-003
    Significant Deficiency Repeat
  • 1075943 2023-003
    Significant Deficiency Repeat
  • 1075944 2023-003
    Significant Deficiency Repeat
  • 1075945 2023-003
    Significant Deficiency Repeat
  • 1075946 2023-001
    Material Weakness Repeat
  • 1075947 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $448,025
14.872 Public Housing Capital Fund $265,100
14.871 Section 8 Housing Choice Vouchers $22,494