Finding Text
Condition: While reviewing certain payroll records it was discovered that there were several cases of
either an employee signature or supervisor signature missing from the employee timesheets used to
process payroll. In some instances, both the employee and supervisor signature were missing from the
timesheet. Per discussions with the individual who was the board president during this period, it was
discovered that certain employees were compensated at times for hours being spent providing services
for the personal benefit of their supervisor at the Club and not for the direct benefit of the Club.
Criteria: All timesheets should be signed by the employee and their supervisor before being submitted to
the payroll department in order to correct any errors and ensure the accuracy of the hours being reported
before payroll is processed.
Cause: Timesheets were not reviewed by the appropriate supervisor before payroll was processed.
Effect: Payroll can be processed with potential errors and inaccuracies in the amount of hours worked
when the appropriate supervisor does not review the employee timesheets.
Auditor’s Recommendation: All employees should sign their timesheet and provide it to the appropriate
supervisor. The supervisor should then review and sign off that the timesheet is accurate before
providing it to the payroll department for payroll processing. The payroll department should review each
timesheet for these criteria and if the criteria is not met or certain inconsistencies are apparent then the
matter should be addressed before a paycheck is issued to the employee involved.