Finding Text
Federal Program: Coronavirus State and Local Fiscal Recovery Funds AL#: 21.027 Federal Award Number: KY0283 Grant Period: 7/1/2022 – 6/30/2023 Federal Agency: U.S. Department of Treasury Questioned Costs: $5,667 Condition: The City does not have sufficient internal controls to ensure that payroll is processed correctly. Cause: During the course of testing, several issues were identified where employees were paid at an incorrect rate or for the incorrect amount of time. Effect: These issues resulted in questioned costs of $5,667.
Criteria: Generally accepted accounting principles require that management design internal controls to provide reasonable assurance that expenditures, including payroll, are processed correctly. Recommendation: We recommend that the City implement additional controls to ensure that payroll is processed correctly. Payroll should be reviewed by a second individual prior to submission.