Finding Text
Finding 2021-001: Payroll Documentation (Significant Deficiency)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Federal Assistance Listing Number: 14.871
Compliance Requirement: Activities Allowed and Unallowed/Allowable Costs
Criteria: The Authority should maintain appropriate controls over the payroll process to prevent or
detect inaccurate or unsupported costs.
Condition: The Authority's controls over the payroll process were not properly implemented, resulting
in employee files missing the approved salary or wage rate and hourly employees' timesheets not being
reviewed or approved.
Context: The Authority received approval by the Board of Commissioners of the salary and wage rates
but did not retain the documentation in the employee files. Further, the Authority did not obtain a
supervisor's review and approval of timesheets for hourly employees.
Effect: Payroll could be misstated for hourly employees claiming hours or overtime worked and/or for
employees paid a salary or wage that is unapproved by the Board.
Cause: The Authority's internal controls over the payroll process were not appropriately implemented
surrounding maintenance of employee files and timesheet review and approval.
Repeat Finding: This is not a repeat finding.
Questioned Costs: None.
Auditor's Recommendation: The Authority should review and enhance its internal controls to ensure
that all employee files retain the latest approved salary or wage rate information and that every
timesheet is reviewed and approved by the hourly employee's supervisor.
Views of Responsible Officials: The Authority will review and enhance our policies and procedures
over payroll processing, to ensure all timesheets have visual approval by supervisor, and employee files
obtain copy of the annual board approved salary worksheet.