District Response to Audit Finding on Payroll Control and Federal Awards In August of 2021 the district had administrative employees switch positions. These employees had already been paid their July payroll. When the employee positions were updated by the Payroll Clerk in August of 2021, They were accidently set up to receive all twelve of their new position salary over the remaining eleven months of the fiscal year. The result was that both administrators received the equivalent of thirteen months of pay over twelve pay periods. Employees did not receive an extra check, rather the additional amount was spread over eleven checks. The Payroll Clerk and Business Manager were both in their first months of work with the district, and employee inexperience played a large role in the payroll error. The personal change forms did not include the signature of the District Clerk. District policy is that all employee additions/changes must be signed off by the Clerk. These position changes occurred at a time of transition and this step was missed. In response to this mistake the district has taken the following steps to ensure that the error will not occur again: - Employee change forms have been computerized and must pass through the Human Resources Director, and the District Clerk before the payroll change can be enacted o Payroll Clerk does not receive form until District Clerk has seen and verified o This eliminates the potential of an employee change occurring outside the purview of the District Clerk - District Clerk must sign off on all employee position changes, regardless of how long the Clerk has been with the district, onboarding timeline, or transition plan - Payroll Clerk receives additional training on setting up new employees, and switching employee positions o Cost of employee turnover is mitigated through intense cross training within the Business Office team, helping eliminate errors made by new staff members - All payroll changes are carefully reviewed both when they are put in place, and during the next payroll period - Mid-year employee shifts are given special attention o Human Resources Director verifies the new payroll days and payments o Business Manager/District Clerk reviews system (I-visions) changes in lock step with Payroll Clerk - Payroll Journals are reviewed every payroll to ensure that individual entries are correct - Individual employee pay is compared to budget throughout the year to ensure alignment with position projections Josh Viegut District Clerk LIVINGSTON SCHOOL DISTRICT 4& 1 Lynne Scalia, Ed.D ? Superintendent Josh Viegut ? Director, Business Services 129 River Dr. Livingston, MT. 59047 406-222-0861 www.livingston..k12.mt.us