Finding 575024 (2023-008)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2025-08-28
Audit: 365202
Organization: Leadership Memphis (TN)

AI Summary

  • Core Issue: There was a lack of documentation for payroll allocations and pay rate approvals during FY23.
  • Impacted Requirements: Inadequate controls for timekeeping and payroll documentation led to compliance risks.
  • Recommended Follow-Up: Implement new payroll oversight processes, including mandatory timecards and documented approvals for all employees.

Finding Text

Lack of Documentation of Payroll Allocations and Pay Rate Approvals Corrective Action: The Organization lacked adequate timekeeping and pay rate documentation controls during FY23, and no current management or staff were present at the time. As of FY26, the Organization has begun implementing new payroll oversight processes. Going forward, timecards will be required for any employee whose time is allocated to multiple functions or funding sources. Management will also require documentation of payroll approvals (e.g., signed letters or memos) for all employees and will store these documents in both hard copy and electronic format. Payroll allocation methodologies will be reassessed at least every three years using a representative time study.

Corrective Action Plan

Corrective Action: The Organization lacked adequate timekeeping and pay rate documentation controls during FY23, and no current management or staff were present at the time. As of FY26, the Organization has begun implementing new payroll oversight processes. Going forward, timecards will be required for any employee whose time is allocated to multiple functions or funding sources. Management will also require documentation of payroll approvals (e.g., signed letters or memos) for all employees and will store these documents in both hard copy and electronic format. Payroll allocation methodologies will be reassessed at least every three years using a representative time study.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 575023 2023-007
    Significant Deficiency Repeat
  • 575025 2023-009
    Significant Deficiency Repeat
  • 1151465 2023-007
    Significant Deficiency Repeat
  • 1151466 2023-008
    Significant Deficiency
  • 1151467 2023-009
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $631,961
14.269 Hurricane Sandy Community Development Block Grant Disaster Recovery Grants (cdbg-Dr) $59,008
94.024 Social Innovation Fund Pay for Success $8,000