Core Issue: There is a significant deficiency in internal controls over payroll cost allocation, leading to undetected errors in payroll for one employee across five pay periods.
Impacted Requirements: Inaccurate payroll costs may affect both Federal and non-Federal awards, risking compliance and financial reporting integrity.
Recommended Follow-Up: Review and strengthen internal controls to ensure accurate payroll cost allocation and implement regular audits to catch errors promptly.
Finding Text
2022-001 Internal Controls over Payroll Cost Allocation Type of Finding: Significant Deficiency in Internal Control over Financial Reporting As discussed in detail at Finding 2022-002, the Organization?s established internal controls over payroll cost allocation did not detect and correct errors found in five pay periods for one sampled employee. Inaccurate payroll costs may have been charged to Federal and non-Federal awards.
Categories
Allowable Costs / Cost PrinciplesReportingSignificant DeficiencyMatching / Level of Effort / EarmarkingInternal Control / Segregation of Duties