Baseline Standards - Personnel/Payroll

Personnel/Payroll - Internal Control Objectives Minimum Internal Control Techniques

A. Valid authorization of new hires

  1. Approval by the proper level of management of selection criteria, (e.g., personnel levels, experience and minimum skills, location, personal integrity, education), compensation rates, and payroll deductions.
  2. Communication of selection criteria, compensation rates, and payroll deductions to the departments, EDP, and user officials.
  3. Written approval on a Personnel Action Request (PAR) of new hires and payroll data through reference to documented data approved by management (who has no responsibility for payroll preparation).
Response:
  • All staff positions are filled in the following manner: The departmental chair requests the posting of a vacant position. The Director of Business Operations approves the posting and forwards paperwork to HR via the Provost's Office. Candidates referred by HR are reviewed by the hiring department. Once a selection is made, the Director reviews the recommended finalist and if necessary, equity issues are discussed with the HR. Formal job offers are made subsequent to security clearance and/or HR approval.
  • All departmental chairs and administrators are aware of the College’s hiring policy. The Director is HR's primary contact within the College. The College follows all UH/state/federal guidelines pertaining to hiring all employees.
  • The College’s Central Business Office approves all PAR's.

B. Valid authorization of changes in compensation rates and payroll deductions

  1. The department business manager (who does not prepare payroll) documents authorization on a PAR, Mini-Budget or Continuation Authorization Form for (a) additions to, changes to, or deletions from payroll (b) individual wage or salary rates and changes thereto and (c) payroll deductions.
Response:
  • The Central Business Office approves all the above documents. The Central Business Office does not prepare the payroll documents. The department chair signature is required on all faculty PAR's and then forwarded to the Director for approval.

C. Accurate input of changes to payroll system

  1. Changes to the payroll system are processed only with a properly authorized PAR.
  2. A department employee who is not responsible for payroll preparation or authorization of payroll changes ensures that all original data and revisions are accurately and completely processed.
Response:
  • The College is in compliance with #1.
  • The College is in compliance with #2. The business personnel responsible for payroll/HR (payroll analyst) prepares the PAR's. The DBA reviews the documents for accuracy and completeness. The Central Business Offices authorizes the documents. The payroll analyst checks the Trial Payroll Verification and business personnel responsible for reconciling (Accountant/Financial Coordinator) reconciles to PeopleSoft.

D. Completeness of summarization and validity of payroll

  1. College Business Manager uses a check-off sheet to ensure that all time records have been submitted.
  2. College Business Manager performs period-to-period comparison of the amounts of recurring entries.
Response:
  • The payroll analyst verifies all time records have been submitted via the departmental internal database or check-off list and performs the duties of point #2.

E. Propriety of account classification

  1. Department business manager checks account coding on time records and posting of payroll to PeopleSoft.
Response:
  • The Payroll Analyst reviews coding on time sheets upon receipt. The DBA reviews at time of final sign-off. The Trial Payroll Verification report is checked against our database. If corrections are necessary, payroll is immediately contacted and given information to correct the required changes. Follow-up is done by checking the Peoples Soft HR payline to ensure a proper check is generated. And final check is done on the Check Distribution report. The Accountant/Financial Coordinator reconciles payroll activity to PeopleSoft on a monthly basis. The DBA reviews this reconciliation on a monthly basis.

F. Consistent and efficient responses to inquiries

  1. The department business manager is responsible for all personnel/payroll inquiries and is the primary contact person to whom all questions are directed.
Response:
  • The DBA is the primary contact; however, inquiries may also be directed to Payroll Analyst.