Finding Text
2022-001 Payroll Documentation Retention Criteria: Management is responsible for establishing a system that includes the retention of documentation to evidence proper approval and provide accurate reporting of payroll transactions. Condition: There is no formal process for documentation retention. Context: During our audit, we identified two employee timesheets the Organization was unable to provide documentation. Cause: Inadequate policies and procedures over the retention of documentary evidence of transactions, review, and approval. Effect: Failure to adequately establish and maintain effective internal controls over the documentation of payroll disbursements may result in misstatements to the financial statements and/or unauthorized disbursements not being identified in a timely manner. Questioned Costs: None noted. Repeat Finding: No. Recommendation: We recommend that the Organization develop policies and procedures to ensure retention of documentary evidence of approved timesheets to ensure accuracy of reporting. Views of Responsible Officials: Management agrees with the finding and a response is included in the corrective action plan.