Finding Text
Condition: During the testing of the Aging Cluster payroll expenditures, it was discovered that four of forty three employee timecards tested was not approved prior to processing of payroll, leading to the potential for inaccurately including or allocating payroll expenditures to the grant.
Criteria: Funding under the Aging Cluster is to be used for nutrition and supportive services consistent with the terms of the agreement with the Area Agency and the service provider which is inclusive of payroll expenditures.
Cause: The Organization's management did not review and approve the timecard prior to processing of the payroll.
Effect: Since the internal control surrounding approval of timesheets prior to processing payroll was ineffective, there exists the possibility that payroll expenditures were improperly included or allocated to the grant.
Recommendation: The Organization should check to ensure all timecards are approved before payroll is processed.