Office of Internal Audit

Payroll and Human Resources

Verification of Payroll and Accounting

1. Is payroll reconciled after each pay period using payroll reports accessed via the web?

  • Ideal Answer: YES. Payroll reconciliation reduces underpayments and overpayments. It should be performed by someone other than the person who enters payroll information into the system. Please refer to the Office of Business Operations’ (OBO) Payroll webpage for additional information.
2. Are Human Resources standard reports viewed on a regular basis at the departmental level?
  • Ideal Answer: YES. The recommended web reports are designed to give departments a quick update on payroll and human resource data and a means to verify that the payroll is correct. They also serve to remind departments of needed documentation such as I-9's, updated non-resident information, and terminations that need to be processed. Please refer to the OBO’s Payroll and Human Resource Services (HRS) webpages for additional information.
3. Are Payroll expenses verified to the monthly departmental Statement of Account reports?
  • Ideal Answer: YES. It is necessary to verify the gross amounts paid and the fringe benefit computation each month and then verify the totals to the monthly  Statement of Account to assure the correct accounts were charged. Please refer to the OBO’s Payroll webpage for additional information.
4. Are leave requests documented and compared to monthly leave reports to verify the reporting accuracy?
  • Ideal Answer: YES. Internal controls deter fraud. By comparing what is reported to what is requested, it catches inadvertent errors in reporting and it conveys to the employees that the department is "watchful" of their attendance. Leave requests may be documented using optional Request for Leave forms or they may be noted on a calendar, by e-mail, or other form of record by the supervisor. Please refer to the OBO’s Payroll webpage for additional information.

 

Segregation of Duties

1.  Can the individual who has approval authority delegated to them initiate payroll transactions in the workflow system and then approve them?

  • Ideal Answer: NO. Payroll transactions are to be initiated and approved by two separate individuals at the department level to maintain segregation of duties. Please refer to the HRS’s Personnel Action Form webpage for additional information.
2. Does everyone have their own access to Payroll and Human Resource systems so that passwords are never shared?
  • Ideal Answer: YES. Passwords should never be shared. Everyone who needs access to perform their jobs should have their own password.

3. Are weekly, biweekly, and monthly time records reviewed and approved by the employee's supervisor or their designee who has knowledge of the hours worked by the employee?

  • Ideal Answer: YES. The person who approves the time record is indicating that the hours are recorded correctly. Please refer to the UNI Time/Payroll webpage for additional information.
4. Are biweekly employees terminated timely?
  • Ideal Answer: YES. Leaving a biweekly appointment open allows the possibility of submitting fraudulent time sheets. Please refer to the OBO’s Payroll webpage for additional information.