Finding Text
2022-008 Improving the payroll authorization processes – Significant Deficiency
Condition: We selected a sample of payroll transactions for the month of October 2021 and November
2020 to determine whether the payroll transactions were properly approved. During our testing, we noted
two transactions for the month of October 2021 and five transactions for November 2020 that either were
not signed by management and/or by the employee.
Criteria: Good internal control over payroll transactions paid require all payroll timesheets be reviewed
and signed by both the employee and the employee’s manager.
Cause: The Association’s payroll policies and procedures were not followed.
Effect: By not verifying that dual signatures are on all timesheets, there is an increased risk that payroll
hours will be reported inaccurately.Recommendation: We recommend that all timesheets be approved by both the employee and the
employees’ manager.
Management’s Response and Corrective Action Plan: Please see attached corrective action plan.