Finding Text
Condition: For one pay period, the hours entered into the payroll system for an employee were less than the hours per their time sheet.
Criteria: In accordance with the procedures established by AACA, payroll is to be reviewed by both the Director of Finance and CEO.
Cause: Controls were not implemented and errors are going undetected / unnoticed.
Effect: The employee was underpaid. Also, the incorrect amount was requested for reimbursement.
Recommendation: Closer attention should be paid when performing the review of payroll to ensure that all employee hours and dollars are accurate and in agreement with the supporting documentation (ie. employee time sheets). Also, the employee should be retroactively paid.
Views of Responsible Officials and Planned Corrective Actions: We recognize the error in payroll hours and acknowledge the need for stricter review procedures. The underpaid employee has already received retroactive compensation in the pay period ending August 30, 2024 to rectify the error. A secondary review process will be implemented which will involve a designated staff member reconciling hours recorded on timesheets with the payroll system entries before final approval. Staff involved in payroll processing will be reminded on the importance of accuracy and the potential implications of errors. This will include step-by-step instructions for validating payroll entries.