Finding Text
Condition and context: When initiating the drafts to pay payroll related withholdings and expenses, the District haphazardly selects the vendors and pay periods being paid into one combined draft from the bank account. The District staff does not retain a listing of what is being paid with each draft in order to reconcile to the payroll records. The posting to the general ledger for the payment of payroll related withholdings and expenditures is also handled in a haphazard manner by combining various items over several pay periods and vendors into a "direct voucher posting" entry and cannot easily be reconciled to the actual drafts from the bank account. These “direct voucher posting” entries are also recorded as outstanding items even though the drafts have not been initiated until after the month end of the bank reconciliation date which incorrectly reduces the cash balance and payroll liability balances. The combination of lack of records for initiating the drafts from the bank account and lack of detailed records for posting items as paid in the general ledger resulted in no accounting trail which prevents a correct reconciliation.