Finding 547556 (2024-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351741
Organization: El Centro Hispano, Inc. (NC)

AI Summary

  • Core Issue: Timesheets are missing required signatures from both employees and supervisors.
  • Impacted Requirements: This violates the organization's policy on timesheet approval, risking incorrect allocation of employee time to grants.
  • Recommended Follow-Up: Implement a verification step before payroll processing and enhance training on timesheet approval for employees and supervisors.

Finding Text

Criteria- Per Organization policy, timesheets are required to be signed by the employee and their supervisor indicating approval. Condition- Not all timesheets tested contained the required employee and supervisor signatures. Context- Testing included four pay periods which were allocated across the three grants falling under the Federal Assistance Listing Number program tested as a major program. Approximately thirty employees were paid each pay period. Of these thirty employees, between seven and ten employees failed to sign their timesheet and between three and nine supervisors failed to sign the timesheet. Effect- Employees' time could be incorrectly allocated to the wrong grant. Cause- The issue arose due to insufficient follow-up on compliance with policy regarding timesheet approval along with an absence of a final verification step prior to payroll processing. Also, there was a lack of awareness among some employees and supervisors concerning the timesheet approval policy.

Corrective Action Plan

Recommendation El Centro Hispano should remind employees and supervisors of the required policy to sign all timesheets. Further, payroll should not be processed until all required signatures have been obtained. Views of Responsible Officials and Planned Corrective Actions El Centro Hispano agrees with the finding and will conduct training sessions for all employees and supervisors to ensure a clear understanding of the timesheet approval policy. These sessions will emphasize the importance of proper documentation, the potential risks of non-compliance, and the role of supervisors in enforcing this requirement. Training will be incorporated into the onboarding process for new employees and periodically reinforced for current staff. To reinforce compliance, we will establish a structured communication plan, including periodic email reminders and notices on our internal platform. These reminders will highlight the importance of signing timesheets, provide step-by-step guidance, and include deadlines to ensure timely completion. Additionally, supervisors will receive direct reminders before each payroll cycle to verify and follow up on pending signatures. A stricter review process will be implemented before payroll submission. The Human Talent Area will conduct a systematic check to ensure all timesheets are complete and properly signed. Any missing signatures will be flagged, and payroll processing for those employees will be paused until the issue is resolved. This measure ensures accountability and prevents unauthorized payroll processing. To assess the effectiveness of these corrective actions, quarterly compliance reviews will be conducted. These reviews will include random audits of timesheets to identify any recurring issues and evaluate adherence to the policy.

Categories

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Other Findings in this Audit

  • 1123998 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.137 Community Programs to Improve Minority Health $427,784
21.027 Coronavirus State and Local Fiscal Recovery Funds $150,980
93.011 National Organizations for State and Local Officials $106,037
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $101,617