Finding Text
2022-001 Significant Deficiency Condition: The Executive Director (ED) receives an email from Checkmate when the payroll is completed (or finalized) that includes a link to the final payroll register and other reports. It is at this point that the ED would log in to Checkmate and review the final report against what was approved. There was no indication that this was ever done. It was not part of the documented procedures that were communicated by Squaretail to in-house accounting during training, nor did the ED ever give any indication that they performed this step. Criteria or specific requirement: It is crucial for the Executive Director to review the final payroll register and document this review to ensure not only that it is taking place, but it is being done timely. Cause: The payroll processes changed several times during the year under audit. Effect: Failure to review the final payroll report each pay period against the initially approved submission documents increases the risk that the information submitted does not align with the source documents, such as timesheets. Questioned costs: No questioned costs were identified. Recommendation: In order to provide greater control over payroll, we suggest that management review the final Checkmate payroll report for each payroll period prior to the pay date. We also suggest that documentation of the review of these reports be made on the reports and be maintained.