Finding Text
Criteria: Employee pay charged to the federal program should be approved and come from an identifiable source.
Condition: Certain employees had additional pay charged to the program that was not included in their approved contracted pay for the year and the source of pay was unidentifiable.
Cause: The payroll system was not updated to properly reflect the correct allocation of employee pay or benefits.
Effect: The cost charged to the federal program was unable to be determined if it was allowable.
Recommendation: We recommend that the payroll report is reviewed to ensure that pay is reconciled to annual salary contracts and support be maintained for any differences.
Management Response: The Neighborhood House will conduct an internal review of all payroll and payroll allocations to make adjustments and corrections to program allocations. The payroll report will be reviewed annually for revisions. Staff will discuss a procedure to ensure that payroll and benefits are accurately allocated.