Finding 7097 (2022-002)

Criteria: Monitoring payroll compliance procedures related to the employee’s historical salary and wage changes is necessary to ensure the amount charged against the major program is accurate. Condition: The Fund is not keeping historical records of salary and wage changes for employees of the Fund. Context: We discovered during our testing the Fund was unable to provide support for changes in the employee’s hourly wage or annual salary. Cause: Management did not keep records of approval for changes in employee’s hourly wage or annual salary. Effect: The effect of not keeping historical records of wage and salary changes could cause the amount charged to major program to be inaccurate. Recommendation: Management should keep records of approval for all changes in an employee’s gross compensation in the employee’s personnel file. Views of Responsible Officials and Planned Corrective Actions: A Standard Operating Procedure has been created to outline the workflow of the Personnel Action Form. Additionally, a new process has been created where the Human Resources (HR) Analyst sends biweekly excel sheets to Payroll and copies the HR Director with any pay changes. Copies of the Personnel Action forms are attached and the HR Director confirms that all Personnel Action Forms have been placed in the employee’s file. Lastly, two days a month, the HR Analyst is to ensure all filing is up to date.