Finding Text
Finding 2024-005, 2023-003: Allowable Activities – Payroll Documentation and Approvals
Program Names and Community Services Block Grant, 93.569, Passed through Michigan
Awarding Agencies: Department of Health and Human Services
Finding Type: Significant Deficiency on Internal Controls over Compliance and
Noncompliance
Questioned Cost Amount: Based on deviations noted in our testwork the projected likely questioned
costs resulting in noncompliance are as follows:
Community Services Block Grant, 93.569: $127,667
Context / Criteria: One timesheet was lacking manager approval and two selected payroll
transactions did not recalculate to the selected employee’s timesheet and
approved pay rate.
Condition: During our payroll testing we noted the following that suggest a deficiency
in internal control and noncompliance:
Community Services Block Grant, 93.569: 2 out of 40 payroll samples did
not recalculate. 1 out of 40 payroll samples did not have a manager’s
approval on the timesheet.
Cause / Effect: Wayne Metropolitan Community Action Agency and Affiliates did not
maintain sufficient procedures to ensure payroll charges were properly
reviewed and allocable to the program.
Recommendation: Uniform Guidance requires gross pay allocable to a program be reflected
in a payroll distribution report or similar method. We recommend
management ensure all timesheets are approved by a supervisor, and that
all employees are paid at their approved pay rate.
Views of Responsible
Officials and Corrective Management agrees with the finding. See accompanying corrective action
Actions: plan.