entering, approving, and reconciling payroll- time and labor apm 55.60.02
Post on 15-Dec-2015
218 Views
Preview:
TRANSCRIPT
2
Course Objectives
• Gain an understanding of the policy• Discuss recommended procedures• Discuss segregation of duties for payroll
activities
3
Definitions
• EDR—Expense Distribution Report, a report listing employees and the ChartFields they were paid from
• Pay Comparison Report—Listing of employees whose rate of pay has changed from the previous period
4
Payroll DutiesTime Keeper Approver Verification / Reconciliation Managerial Review
Obj
ectiv
e • Authorize time • Ensure accuracy• Ensure time is entered and approved
• Verify completeness• Verify changes were made• Verify accuracy in General Ledger
• Reasonability• Prior steps done• Reconciling items are appropriate
Objective
• Maintain delegates• May adjust time
• Review Gross Pay Inquiry screens• Review BIW time • Review MON absences
• Expired Appointments• Verify everyone is included• Additional Pay is accurate• EarnCodes are accurate• Appropriate ChartFields • Reconciliation of EDR to GL
• Test reasonability of payroll, trend analysis• Verify prior steps are completed• Reconciling items appear appropriate• Review USHR0087 and EDR for unusual or unanticipated payroll items
Requ
ired
Out
put • Approval in Time &
Labor• Completed checklist or prepared reconciliation AND• Signed EDR, and USHR0087
• Signed checklist or reconciliation AND• Signed EDR, and USHR0087
Required Output
• Review EDR to assure pay includes only appropriate persons• Review USHR0087
Activ
ities
Activities
Time Keeper
Overview• All employees enter their own time
• Exempt enter absences• Non-exempt enter time and absences
• Paper timesheets not required• May adjust time as necessary• May review exception reports
5
Time Keeper
Suggested Tasks• Reasonability test data entered • Monitor for expired appointments• May review Payroll Comparison report
6
Time Keeper
Required Functions• Enter and maintain delegates• Communicate with Payroll and HR offices
7
Approver
Overview• Should be a supervisor
• Authorized by Department Management• Approval may be delegated• Not the same person who performs the
verification• The system documents approval• Approves time entered (not payroll amounts)
8
Approver
Objectives• Authorize time entered• Ensure time entered is accurate• Ensure all time is submitted• Review for missed punches
9
Approver
Activities• Review Payroll Comparison Report• Review EDR• Review payroll amounts—
View Gross Pay inquiry screen• Review bi-Weekly time and monthly absences
for accuracy and appropriateness
10
Approver
Required Output• Time and absences are approved in Time and
Labor for monthly and bi-weekly
11
Verification / Reconciliation
Objectives• Verify changes are appropriate and accurate• Ensure payroll is complete• Validate General Ledger Entries• Validate on EDR
• Review for expired appointments
Nothing Unauthorized Additional Pay amountsRate of Pay HoursEarnings code Validate ChartFields
13
Verification-Verify Changes
Verify Accuracy & Appropriateness of Changes
Look for changes that are missing.
15
Verify– Validate Information
USHR Reports• Do not use USHR0112
• Not Based on Payroll System• USHR0173 Used for Employee Detail• Expense Distribution Reports (EDR)
• Summary (e.g., USHR0193S)• Detail (monthly and bi-weekly payruns
e.g. USHR0193M/B)
20
Verify– Validate Information
Expense Distribution Reports• Three groupings within each EDR type
• USHR0193 summarizes by DeptID• USHR0208 summarizes by Program• USHR0209 summarizes by Project
21
The total payroll expense for the department in total should be compared
From the EDR
To the Income Statement
Verification – General Ledger
23
Verification – General Ledger• Complete the Checklist for payroll transactions• Review non-PRL sourced entries
• Payroll Correcting Entries• Journal Entries• Vouchers
24
Verification / Reconciliation
Required Outputs• Signed EDR• Signed Pay Comparison Report (USHR0087) • Reconciliation or completed Checklist
31
Managerial Review
Overview• At least Quarterly
• Frequency dependent upon control environment• By Department Head or Designated
Administrator
32
Managerial Review
Objectives• Review detailed enough to determine:
• Authorized transactions accurately recorded• Timely transactions in General Ledger• Adequate controls exist• Payroll amount is reasonable
33
Managerial Review
Activities• Review the EDR• Review USHR0087• Review the Income Statement• Review any reconciling items• Ensure verification/reconciliations were timely• Retain documentation in department
34
Managerial Review
Required Output• Signed
• EDR • Pay Comparison Report (USHR00087) • Checklist or Reconciliation
35
Why Segregate Duties?
• Segregation--One person only performs one task:• Record• Approval• Verify• Managerial Review
• Benefits of segregation• Deters fraud• Detects errors
36
Segregation-Compensating Controls
• When less than optimal segregation exists, implement compensating controls
• Compensating controls include:• Managerial review for every pay cycle• Perform detailed managerial reviews• Share resources with other departments
37
Segregation—Levels of ReviewTime
Keeper ApprovalVerifier/
ReconcilerManagerial
Review FrequencyDetail or
High Level1 2 3 Manager Quarterly High level1 2 1 Manager Quarterly High level1 1 2 Manager Quarterly High level1 Manager 1 Manager Quarterly High level1 Manager 2 Manager Quarterly High level
Manager Manager 1 Manager Quarterly Detail1 2 Manager Manager Pay Cycle Detail1 2 2 Manager Pay Cycle Detail
Manager 1 1 Manager Pay Cycle Detail1 Manager Manager Manager Unacceptable
Manager Manager Manager Manager Unacceptable
38
• Keep roles segregated if possible• With optimal segregation-mangers must
document their review of at least one pay cycle per quarter for each DeptID, Program, or Project as appropriate
• Verifier must sign the EDR, USHR0087, and either complete Checklist or Reconciliation
Summary
39
Additional Information
• University Accounting Policy Entering, Approving, and Reconciling Payroll – Time and Labor – APM 55.60.02
• Other related training available:• Financial Compliance Training Website• Contact your Campus Accounting Office for
departmental training sessions or further discussion
40
top related