NEWTON COUNTYLocal Government

2020-001 Lack of Payroll & Personnel Documentation Regarding Coronavirus Relief Funds CFDA #21.019 Condition: The County does not have sufficient internal controls over the payroll and personnel files regarding employees that were selected for testing on the Coronavirus Relief Fund program. There was difficulty obtaining documentation from personnel and payroll files that could prove the existence of the employees selected. In addition, the payroll clerk did not have copies of the W-4s on file when processing payroll and as a result, payroll withholdings may not have been processed correctly. Criteria: The County is required to maintain systems of control and have adequate documentation on file for employees at the County. This documentation includes updated W-4 withholding reports and updated employee records (such as employee evaluations) which can be readily available upon request. Cause and Effect: The County did not have sufficient internal controls and documentation of payroll and personnel files of employees selected for testing which caused difficulty in auditing the employees and payroll records which were expenditures for the Coronavirus Relief Funds reimbursements that were received. Recommendation: The County should maintain and update payroll and personnel files, including evaluations and employee W-4s, and these files should be readily available upon request. We further recommend that the payroll department at the County Clerk's office receive and keep updated W-4s for all employees so that payroll withholdings can be processed accordingly. Responsible Official's Comments and Plan of Action Management of the County is committed to taking steps to communicate within departments and keep on file personnel and payroll documentation which includes employee evaluations and updated W-4 forms which will be readily available upon request. Management has further committed to obtaining updated W-4 forms for employees and a copy of these files be kept on file with the payroll department at the County Clerk's office so that payroll withholdings can be processed accordingly.