Finding Text
Significant Deficiency in Internal Controls Over Financial Reporting – Payroll
Repeat Findings: No
Criteria:
The City’s payroll department should ensure all timesheets are approved by appropriate supervisor
before payroll is processed and disbursed. Supervisory approval of timesheets assists preventing
errors, fraud, or misuse of resources.
Condition and Context:
We tested a population of 25 payroll transactions for the fiscal year ended June 30, 2024 over four
pay periods and found that 3 employees selected for testing did not have properly approved
timesheets.
Effect or Potential Effect:
The City could potentially allow for unapproved time to be paid to employees.
Questioned Costs:
Unknown.
Recommendation:
We recommend that the City review their internal controls processes and procedures over payroll
processing to ensure all timesheets are properly approved before payroll is processed.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.