Finding Text
FINDING 2024-001 - Coronavirus State and Local Fiscal Recovery Funds - Assistance Listing No. 21.027; Grant Period - For the year ended March 31, 2024
Condition: The internal controls over the maintenance and approval of timesheet data were not operating as designed. As a result, we were unable to review a supervisor signature to determine if certain timesheets were approved.
Criteria: Complete records and approvals of timesheets would provide documentation of authorization to the specific employee for payroll earned and any additional payments when necessary. The Organization’s policy is to have an employee and supervisor signoff on the timecard for each pay period.
Cause: The system of controls over the payroll process did not operate consistently to maintain and approve timesheet data for 9 of the 54 items selected for testing as part of the payroll testwork performed.
Effect of Condition: The Organization was unable to provide documentation to verify these timesheets were approved.
Questioned Cost: None
Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample.
Recommendation: The Organization’s internal control system should be modified to document approval of timesheets. All employees should be adequately trained on the internal control procedures for the payroll process.
Views of Responsible Officials and Planned Corrective Actions: There were two organizational changes that happened in the fiscal year that impacted this issue. First, the Executive Director retired and was replaced. Secondly the Program Director was replaced mid-year. Both are now acutely aware that the agency timesheet policies must be followed at all times. Timesheet policy will be reviewed with all Program Directors in the agency. Moreover, the agency is implementing a new payroll system that incorporates an electronic time record that supervisor, and the executive director, approval must be verified before payroll will be processed. The new system and review of current policy with all staff and program directors will ensure this internal control is followed.