Old Colony Elder Services, Inc.

Condition: During the testing of the Aging Cluster payroll expenditures, it was discovered that four of forty three employee timecards tested was not approved prior to processing of payroll, leading to the potential for inaccurately including or allocating payroll expenditures to the grant. Criteria: Funding under the Aging Cluster is to be used for nutrition and supportive services consistent with the terms of the agreement with the Area Agency and the service provider which is inclusive of payroll expenditures. Cause: The Organization's management did not review and approve the timecard prior to processing of the payroll. Effect: Since the internal control surrounding approval of timesheets prior to processing payroll was ineffective, there exists the possibility that payroll expenditures were improperly included or allocated to the grant. Recommendation: The Organization should check to ensure all timecards are approved before payroll is processed.

Management acknowledges this situation occurred, and in response to the finding, has reviewed and enhanced the timecard approval process, which includes a requirement for hourly employees to complete and verify their timecard by the end of the last day of the pay period and review by a supervisor by noon on the Monday of payroll week. If either an employee or supervisor verification is absent, human resources will analyze work hours and approve the appropriate time. Human resources will monitor timecards throughout the payroll period to detect any potential issues as soon as possible so they can be addressed timely, including random checks of each payroll by the human resources director and manager to verify the accuracy of time cards.. In addition, Human resources will provide ongoing support and training to all employees regarding the payroll process, the importance of deadlines, and the potential consequences for failure to comply. On a quarterly basis, human resources and finance will collaborate to ensure the accuracy of labor allocations.