Finding Text
No Access to Historical Payroll Timesheets
Federal Program Information:
Funding agency:
U.S. Department of Health and Human Services
Title:
Head Start
AL number:
93.600
Award number:
09CH012226-01, 09CH010524-05, 90CM009862-01, 90CM009826-05
Questioned Costs: None
Criteria or Specific Requirement: Internal controls requires transaction to be supported by
proper documentation, review and approvals. Timesheets are an integral internal control activity
to determine that stated account balances are accurate and fairly reported.
Condition: E Center switched payroll service providers effective January 1, 2024, however, E
Center failed to obtain a backup copy of timesheet files from the previous payroll service
provider. To date, E Center has not been able to obtain timesheets from the previous provider
and it is uncertain if the timesheets will be obtainable.
Context: In performing the audit, 45 payroll transactions were selected to test for supporting
documentation and effective controls. It was observed that transactions selected prior to
January 1, 2024 did not contain timesheets as supporting documentation.
Effect: Without access to timesheets, we were unable to determine proper review and approval
by employee or the supervisor. Without support, the probability that fraud or material errors will
occur and go undetected increases.
Cause: A former employee of E Center had the opportunity to download backup copies of
timesheets for a period of time but failed to download before the expiration date established by
the previous payroll provider.
Repeat: No
Auditor's Recommendations: E Center should continue its attempt to obtain the historical
timesheets from the prior payroll provider. E Center also should implement policies and
procedures to ensure that any future changes in providers include an process to obtain historical
information from the prior provider.
View of Responsible Officials: Management agrees with the finding and has provided a corrective
action plan.