Finding Text
Finding: 2022-002-Nonmaterial Noncompliance – Approval of salary changes.
Condition: The Institute did not update an employee’s payroll based on the approved salary change.
Criteria: The Institute should pay an employee the correct approved salary.
Cause: The Institute approved an employee’s salary change but failed to update the payroll system for the change.
Effect: An employee was paid less than their approved salary during the year. The expense record reflected the amount paid to the employee which was less than the employee’s approved pay.
Recommendation: We recommend that management establish a control in which changes made in the payroll system are reviewed on a timely basis.
Management Response: The Institute concurs with this finding.
Corrective Action Plan: The Institute will establish a control in which each pay period the Controller will review all changes made in the payroll system beginning January 2024.