Finding 555189 (2024-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-04-16
Audit: 353802
Organization: Aletheia House (AL)

AI Summary

  • Core Issue: 10 out of 40 payroll transactions lacked necessary time card approvals from authorized personnel.
  • Impacted Requirements: Internal controls were inadequate to ensure timely review and approval of hourly employee time cards.
  • Recommended Follow-Up: Strengthen payroll policies with biweekly time card reviews and provide training for supervisors on approval procedures.

Finding Text

Payroll: Time Card Approvals for Hourly Employees - ALN 93.959; Condition :Out of 40 payroll transactions tested, 10 payroll transactions did not have time card approvals from authorized personnel for the pay periods between August 1, 2023 through December 31, 2023. Criteria : Management should design internal controls to ensure that time cards for hourly employees are reviewed and approved before payroll is disbursed to ensure that hours worked are accurate and reasonable. Cause : Internal controls designed were insufficient to ensure that time cards are reviewed and approved before payroll is disbursed. Effect : 10 payroll transactions were not reviewed and approved timely to ensure that time cards for hourly employees were accurate and reasonable. Recommendation : Payroll processing policies should be strengthened to include biweekly reviews of time card approvals within the payroll system. Supervisors and managers should be trained on the appropriate procedures for time card approvals. View of Responsible Officials and Planned Corrective Action : The Agency agrees with the finding and policies and procedures have been implemented.

Corrective Action Plan

This deficiency was identified in the FY 2023 audit. Aletheia House addressed this deficiency beginning in January 2024 when it converted to a new payroll system (UKG) that includes timesheet processeing and will allow for supervisors' electronic approval of all nonexempt employee timesheets. In addition, Aletheia House has strengthened its payroll procedures to ensure that at the end of each pay period before payroll is processed, managers and supervisors will review all nonexempt employees and approve hours worked for the period. The payroll department review all timesheets to ensure all have supervisor's approval. No employee's payroll will be processed until an approved timesheet for the respective pay period has been entered into the UKG system. This process will receive regular review by the Chief Financial Officer for quality assurance.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 555190 2024-001
    Significant Deficiency Repeat
  • 555191 2024-001
    Significant Deficiency Repeat
  • 1131631 2024-001
    Significant Deficiency Repeat
  • 1131632 2024-001
    Significant Deficiency Repeat
  • 1131633 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.41M
93.917 Hiv Care Formula Grants $986,396
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $329,915
93.959 Block Grants for Prevention and Treatment of Substance Abuse $253,846
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $157,839
21.027 Coronavirus State and Local Fiscal Recovery Funds $148,071
14.239 Home Investment Partnerships Program $138,118
21.023 Emergency Rental Assistance Program $126,706
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $61,152
93.239 Policy Research and Evaluation Grants $44,547
16.585 Drug Court Discretionary Grant Program $3,938
17.805 Homeless Veterans Reintegration Project $638