Finding Text
Criteria: The Organization?s policies over payroll indicate that completed timesheets are approved by the employee and then submitted electronically to the employee?s supervisor for approval. Upon submission of the timesheet to the employee?s supervisor, the supervisor will verify the accuracy of the timesheet and either approve as is, edit and approve, or contact the employee to make corrections. The employee can go back into the timesheet and make the required corrections and then must re-submit to his or her supervisor for final approval until a certain point at which the timesheet review process is locked. The Payroll Specialist reviews all approved timesheets to ensure accuracy and follows-up on any timesheets not yet complete and/or approved. If any timesheets remain outstanding as of Friday, the Payroll Specialist will lock the timesheets in order to review and pay employees for the time that has been submitted to allow for proper processing time. Condition: During our testing of payroll transactions, we noted 13 of 40 employee timesheets that were not signed at all, or in its entirety by the employee?s supervisor, per our review of the Dayforce Authorization Report for the applicable payroll period tested. Cause: Per inquiry, it appears the missing approvals were an oversight by the applicable supervisor before the timesheets became locked by the Payroll Specialist. Effect: Without proper oversight and approval of employee hours by a supervisor a higher risk exists that time recorded by the employee may be incomplete or inaccurate. Questioned Costs: N/A Repeat Finding: No Recommendation: We recommend the Organization follow its stated internal control policies over payroll to ensure timesheets are adequately reviewed and approved. Views of Responsible Officials: While the Mosaic policy indicates that all time sheets are approved by the employee and the supervisor, there are occasions where that is not possible, and the payroll clerk must approve in order to process payroll. Tracking employee approvals before processing pay is not possible in an organization with 5,000 employees. Currently Mosaic and all Sheppard Pratt Foundation subsidiary corporations are following the Sheppard Pratt policies which do not specify payroll approval requirements.