Finding Text
Payroll Processing - Condition:There was a lack of internal control oversight over the payroll process such that it allowed several instances and inconsistencies in the entity’s payroll records and processing. Cause: We noted for 3 out of 20 sample selections that the hours recorded in the timesheets did not match the hours paid per the payroll journal. Effect: CDCFC payroll internal controls did not prevent or detect errors in their payroll processing system and did not provide for the timely corrections of those errors. Management informed us that their payroll processing system locks timecards at the end of the payroll period each week. Once the timecards are locked, no further changes can be made to the timecards by managers or payroll administrators. CDCFC’s payroll process requires payroll administrators to confirm with supervisors that the hours reported in timecards are correct. Any changes are done directly to the pay grid. However, the confirmation process does not appear to adequately documents these revisions. CDCFC informed us that their process is done verbally by phone calls. Result: The payroll system is not adequately documenting any revisions in timecard processing. We believe this payroll processing could allow errors to occur. It was not practical to determine the rate of occurrence of these payroll processing overrides or to verify the proper corrections were being made.