Finding 6392 (2023-004)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2023-12-22
Audit: 8310
Auditor: Yeo & Yeo PC

AI Summary

  • Core Issue: Missing approved timesheets for 10 out of 40 payroll transactions in the Health Center Program.
  • Impacted Requirements: Federal guidelines require payroll to be supported by approved timesheets.
  • Recommended Follow-Up: Management should ensure all approved timesheets are retained in the payroll system for accurate employee payments.

Finding Text

2023-004 – Material Weakness and Material Noncompliance – Allowable Costs: Missing Timesheets Federal Program: Assistance Listing #93.224 and 93.527, Health Center Program Cluster, Department of Health and Human Services Criteria: Pay’s should be supported by approved timesheets. Condition: We noted that 10 out of 40 payroll transactions tested for the Health Center Program Cluster could not be supported by approved timesheets. Questioned Costs: N/A Cause and Effect: There has been significant turnover in the finance department. Timesheets were not retained for a period of the fiscal year under audit. Recommendation: We recommend that management retain approved timesheets for each pay period for all employees. Timesheets should be retained in the Center’s payroll system and records. This will ensure that employees are being paid accurately for the time they have worked for each pay period. Views of Responsible Officials: Management agrees with the finding. Corrective Action Plan: See attached corrective action plan.

Corrective Action Plan

2023-004 - Material weakness and Material Noncompliance - Missing Timesheets FMC Comment: FMC was in the process of converting for a one payroll system to another system during the Audit year. The conversion process was time consuming and involved files being transferred from one system to another system. This could have resulted in some timesheets being misplaced as opposed to staff being paid without a timesheet being approved. Corrective Action: FMC has a new timekeeping system - Paylocity- that should prevent the issue of missing timesheets since the system is all electronic. Staff cannot get paid unless within the Paylocity system there is an electronic timesheet. The process is described below: The employee's clock in and out electronically, through a web portal on their phone, desktop or laptop. The supervisor is notified through the Paylocity if there are errors or missed punches. The supervisor works with the employee to correct any errors. The supervisor electronically approves the electronic time card. All approved electronic timecards are locked by payroll, then electronically brought from the time and attendance system to the payroll system. Payroll and HR will review all timecards to ensure all hours are correct and the vacation, sick and personal time are within appropriate parameters. Any additional corrections are made electronically with the supervisor and employee's input. Once all the electronic records are approved, Payroll submits the payroll for processing by Paylocity. The electronic timesheet record is printed on one document and kept with the payroll register for each pay period.

Categories

Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 6388 2023-003
    Material Weakness Repeat
  • 6389 2023-003
    Material Weakness Repeat
  • 6390 2023-003
    Material Weakness Repeat
  • 6391 2023-003
    Material Weakness Repeat
  • 6393 2023-004
    Material Weakness
  • 6394 2023-004
    Material Weakness
  • 6395 2023-004
    Material Weakness
  • 582830 2023-003
    Material Weakness Repeat
  • 582831 2023-003
    Material Weakness Repeat
  • 582832 2023-003
    Material Weakness Repeat
  • 582833 2023-003
    Material Weakness Repeat
  • 582834 2023-004
    Material Weakness
  • 582835 2023-004
    Material Weakness
  • 582836 2023-004
    Material Weakness
  • 582837 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $2.78M
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $216,319