Payroll processing - june 2018
Released June 2018
Download the Full Report here
Download the Report Highlights here
Our 2015 timekeeping audit found potential problems with payroll, including manual corrections to payroll records. We last audited payroll in 2006. We conducted this audit to assess whether the planned Oracle upgrade will strengthen control weaknesses and to test transactions for accuracy and proper authorization. We primarily focused on payroll information for city employees from January through September 2017.
- Payroll staff allows departments to exceed timecard approval deadlines and cut corners on documentation—35% of off-cycle check requests and 33% of change sheets lacked sufficient justification
- Many payroll processes are manual, but we identified relatively few errors as a result—two instances in which payroll processed retroactive pay without sufficient approval and one error in shift differential calculations resulting in overpayments
- The city deducted incorrect amounts for 56% of insurance premiums from employees' September 2017 pay checks