Finding Text
Finding 2022-001, Payroll Process. Information on the Federal Program - Assistance Listing Number 93.224 Health Care Center Program (Direct Health Center Program Cluster). Compliance Requirements: Activities Allowed or Unallowed. Type of Finding: Significant Deficiency. Cause - Discussions with Organization employees indicate the cause of missing documentation, approvals and inconsistencies was due to an issue with the payroll software. Criteria - Based on documented internal controls, the Organization should be able to provide approved support for employee pay rates and approved time cards in which the documented hours agree to payroll reports. There should be no inconsistences between time on timecards and payroll reports. Condition - In one instance, the Organization was not able to provide support for an employee's most recent approved payrate. In 13 instances, there was no employee or supervisor approval for an employee's time card. In 11 instances, gross pay could not be recalculated due to inconsistences between timecards and payroll reports. Effect - The missing support and missing approvals could result in improper payroll expenditures. Questioned Costs - Zero. Recommendation - We recommend the Organization follow the documented payroll process and ensure reviews and approvals are documented.