Finding Text
Federal Agency: US Department of the Interior
Federal Program: BIA Compact
Assistance Listing Number: 15.022
Award Number: GT-OSGT043-16
Award Year: 2021
Type of Finding: Significant deficiency in internal control over compliance.
Criteria: Adequate internal control over payroll transactions should be in place to ensure that personnel files are complete with all necessary documentation, which includes proof of approved pay rates.
Condition and Context: During our testing of payroll transactions, we noted 10 out of a sample of 25 payroll transactions which lacked necessary documentation to support management’s approval of the employee’s rate of pay.
Cause: Lack of internal control over payroll transactions, specifically related to personnel files.
Effect: The lack of supporting documentation or approval for rates of pay allows for the potential for misstatement of expenditures or for employees to have incorrect rates of pay.
Questioned Costs: None noted.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend the Council adheres to its internal control policies to ensure accurate reporting of payroll transactions.
Management’s Response: Management concurs with the finding. See Corrective Action Plan.