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.


  • 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.