Finding Text
2024-012 — Maintenance of Payroll Records- Significant Deficiency in Internal Control Over Compliance
Federal program information:
Funding agencies: U.S. Department of Education
Titles: Assistance to Tribally Controlled Community
Colleges; Higher Education Institutional Aid
ALN Number: 15.027 and 84.031
Award years: Various
Criteria: The College is required to process payroll in accordance with its financial policies and procedures, grant requirements and federal regulations and guidelines. Payroll disbursements require authorized supporting documentation such as cancelled checks, time and attendance records, authorized personnel action forms, etc.
Condition: Payroll records, such as personnel action forms, were either missing or did not agree with the amount of wages paid through the payroll system.
Cause: Policies and Procedures regarding the review and maintenance of the College’s payroll records and supporting documentation are not being consistently maintained.
Effect: The College may not be able to demonstrate that the costs charged to federal programs are allowable.
Questioned Costs: Undeterminable.
Context: Of the 25 payroll transactions tested, 9 personnel action forms could not be located.
Auditor’s Recommendations: Enforce policies and procedures to ensure adequate supporting documentation is maintained for all payroll transactions.
Management’s Response: The College will enforce its payroll documentation policies.