Issued Date
November 22, 2019
Audit Objective
Determine whether Town officials established adequate policies and procedures over payroll, leave and health insurance payments.
Key Findings
- The Town overpaid $134,658 in payroll, leave and health insurance payments.
- The health insurance overpayments identified included $19,400 for ineligible individuals.
- Direct supervisors did not always sign time sheets as required.
Key Recommendations
- Consult with counsel to determine whether to recover overpayments and unpaid health insurance contributions.
- Implement supervisory controls over payroll to ensure paycheck amounts are accurate and for documented hours.
- Review all individuals on health insurance to ensure that only eligible individuals receive benefits.
Town officials generally agreed with our recommendations and indicated they have taken, or planned to take, corrective action. Appendix B includes our comments on issues raised in the Town’s response.