Internal Controls — Payroll & Human Resources

Additions, separations, wage rates, salaries and deductions are authorized and documented.
Payroll and personnel policies are in compliance with grant agreements and federal and state laws.
Employees' time and attendance data are properly reviewed and approved.
Employees' time and attendance data are properly processed and documented and accurately coded for account distribution.
Computations for gross pay, deductions and net pay are accurate and based on authorized time and rates.
The recording and summarization of payments to be made and cost to be distributed are accurate and agree with established account classifications.
Payments for employee compensation and benefits are made to or on behalf of only bona fide employees for services performed as authorized.
Employee compensation and benefit costs are properly accumulated, classified and summarized in the accounts.

Risks

Unauthorized or fictitious names are added to the payroll.
Payments continue to terminated employees.
Wage rates and salaries used are at a higher rate than authorized.
Payroll reimbursement through grant funding is denied.
Penalties are imposed for noncompliance with federal and state laws.
Employees are paid for time they did not work.
Employees are paid for time that was unnecessary or unauthorized.
Employees are paid for time during which they were absent from work.
Errors occur in coding of accounting distribution for payroll costs.
Employee compensation and payroll deductions are computed erroneously.
Payroll and related costs are not distributed in accordance with established account classification.
Reimbursable payroll costs are not recovered under grant or shared cost programs.
Amounts paid are at rates different from those authorized.
Payments are made to unauthorized individuals.
Employees are paid for unauthorized benefits.
The accounting distribution of payroll and related costs are classified improperly.
Accrued liabilities or disclosures for employee benefits are misstated.