Finding 9013 (2022-002)

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Requirement
B
Questioned Costs
-
Year
2022
Accepted
2024-01-18
Audit: 12346

AI Summary

  • Core Issue: The payroll system did not reflect an approved salary change, resulting in an employee being underpaid.
  • Impacted Requirements: Employees must receive their correct approved salaries as per Institute policy.
  • Recommended Follow-Up: Implement a control for timely reviews of payroll changes, starting January 2024.

Finding Text

Finding: 2022-002-Nonmaterial Noncompliance – Approval of salary changes. Condition: The Institute did not update an employee’s payroll based on the approved salary change. Criteria: The Institute should pay an employee the correct approved salary. Cause: The Institute approved an employee’s salary change but failed to update the payroll system for the change. Effect: An employee was paid less than their approved salary during the year. The expense record reflected the amount paid to the employee which was less than the employee’s approved pay. Recommendation: We recommend that management establish a control in which changes made in the payroll system are reviewed on a timely basis. Management Response: The Institute concurs with this finding. Corrective Action Plan: The Institute will establish a control in which each pay period the Controller will review all changes made in the payroll system beginning January 2024.

Categories

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Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.U01 Substance Abuse and Mental Health Services Administration $140,442
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $28,521