Finding Text
Criteria: Employee payroll costs should be distributed equitably to federal programs and other activities, consistent with salary allocation and employee job descriptions and time and effort logs should be maintained to support allocation.
Condition: Certain employees’ job descriptions are to work on more than one activity. Employees’ payroll costs were not distributed equitably or supported by time and effort logs.
Cause: The source of allocating payroll costs by activity is the payroll report. The payroll system was not updated to properly reflect the correct allocation of payroll costs.
Effect: The request for reimbursements for the federal programs noted above were not correct.
Recommendation: We recommend that the payroll report is reviewed to ensure that payroll costs are allocated appropriately, consistent with contract allocation, based on the employee’s job description and supported by time and effort logs.
Management Response: The Neighborhood House is undergoing an internal review of all payroll and payroll allocations. Adjustments and corrections to program allocations will be made accordingly. The payroll report will be reviewed annually for revisions.