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.