Recommendation
We recommend that NIYC strengthen its payroll controls by:
Implementing a secondary review of WEX timesheets prior to payroll processing,
- Requiring all pay rate changes to be documented using standardized personnel action forms, and
-Conducting periodic payroll audits to verify compliance with documentation and approval requirements.
Management Response
Corrective Action: NIYC will strengthen internal controls over payroll by implementing additional monitoring and review processes. Going forward, the HR Accounting Coordinator will be responsible
for an annual review of all staff employment files to ensure that all required documentation is present and up to date. Furthermore, no changes will be made to any employee pay rate without prior written approval and documentation using the standardized personnel action form. Once the change has been made in the payroll system, all approvals and documentation for the change in pay rate will be given to the HR Accounting Coordinator to include in the employee's file. We have also implemented a secondary review of WEX timesheets by the Accounting Manager during the payroll process. This should find and correct any errors in the spreadsheet used to summarize the timesheets and process WEX payroll.
Due Date of Completion: Implementing new internal controls starting June 1, 2025
Responsible Person(s): Accounting Manager, HR Accounting Coordinator