Page 17 - HCSD SOPandIC Manual

Payroll Controls

Title: Internal Control

Subtitle: Payroll controls

Purpose: To identify the controls which exist over payroll related items.

Reference: DIAB – Internal Control of Cash Receipts

Procedure:

The business administrator will establish controls that help ensure that potential errors and fraud in
payroll should be avoided and/or detected in a timely manner. These controls may be some or all the
following:
With respect to payroll:

1. Periodically search for fictitious employees
2. Determine improper alterations of amounts
3. Verify that Federal and state deductions are taken, remitted and documented
4. Verify all voluntary deductions are taken, remitted and documented
5. Examine time cards and trace to payroll records in order to verify the proper recording of
employee hours
6. Verify the accuracy of pay rates by comparing them to salary scales and/or Board Minutes.
7. Review the adequacy of internal controls relating to hiring, overtime, and retirement
8. Determine if proper payroll forms exist such as W-4s and I-9s

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