Summary of Finding
Missing or unsigned salary documentation: During our testing of payroll, we noted that offer letters or salary change forms were not signed or could not be located for four of the employees tested. As a result, the Organization did not maintain the proper signed documentation for employee salaries.
Statement of Concurrence or Nonconcurrence
This finding is concurred with due to staff turnover.
Corrective Action
We have introduced Personnel Action Forms (PAFs) to document any changes in an employee’s salary or supervisor status. These forms ensure that all salary adjustments are properly recorded and authorized. If a salary change is due to a promotion or interim role, a formal letter accompanies the PAF, clearly outlining the terms of the change. These letters require signatures from the employee, their supervisor, and the CEO and are
securely stored in the employee’s e-file. To further improve our documentation process, we are transitioning to a new Applicant Tracking System (ATS) that integrates with Paychex. This system will allow for electronic distribution and automatic storage of offer letters, ensuring they are consistently filed and easily retrievable.