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March 30, Audit No. The printed document may contain agency comments, charts, photographs, appendices, footnotes and page numbers which may not be reproduced in this electronic version.
We found that most management controls were generally effective and operations were conducted efficiently.
Our recommended improvements are summarized below and described in the Audit Results section. We reviewed selected payroll documentation and performed limited tests of management controls. Our review was performed between January and November in accordance with generally accepted government auditing standards.
Employees submit changes to their tax withholdings directly to the Office of the Comptroller, while time and attendance data is submitted by timekeepers through the Enhanced Time and Attendance ETA system.
Information on garnishments of employee salaries is provided by the Office of the General Counsel. The Office of the Comptroller has overall responsibility for the accuracy and timeliness of payroll data and payments. A Pay and Leave Section within that office has day to day responsibility for the payroll.
Automated payroll processing and related hardware and software are the responsibility of the Office of Information Technology. To save money and simplify administration, the Commission has decided to out-source payroll processing to another agency, the Department of the Interior.
Out-sourcing is tentatively scheduled for May, Payroll data and payments were generally timely and accurate, and supported by appropriate documentation. We are recommending certain enhancements, as discussed below.
When employee payroll records are updated, payroll technicians enter the data in PTL and the spreadsheet.
They then reconcile the two records. The purpose of this process is to identify errors and prevent fraud by OIT staff who do not have access to the spreadsheet.
While the spreadsheet acts as a management control, its maintenance is time-consuming, and involves duplicate data entry. During the reconciliation, the payroll technicians spend some of their time correcting errors in the spreadsheet, which does not improve the accuracy of PTL.
The cost of the spreadsheet may exceed its benefits, or cheaper controls could be as effective. If not, alternative controls should be implemented.
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