Created : March 16, 2013 at 11:10 PM
August 05, 2003
Status:
** ADDITIONAL INFORMATION
Receive Review of the Payroll Processes, Overtime and SAP/R3 HR Payroll Application.
In accordance with the 2002-2003 Audit Plan, the Office of Management/Facility Audits performed a "Review of the Payroll Processes, Overtime and the SAP/R3 HR Payroll Application." It includes a review of the payroll processes, which included a review of employee_s covered under the Fair Labor Standards Act of 1938 (FLSA), overtime procedures and payments, site visits and a review of various SAP/R/3 HR Payroll Application records and available payroll reports. The objectives of the review were to determine whether current payroll processes and related internal controls have been established and are adequate, pursuant to sound business practices and are in compliance with applicable laws, regulations, and Board Policy, and to determine whether the organizational structure and payroll processes were adequate to assure that the operations were proficiently executed.
We noted a significant weakness in the control environment as it relates to the payroll processes, overtime and the SAP/R3 HR Payroll Application. We identified several payroll processes that need to be corrected in order to comply with the Fair Labor Standards Act of 1938 (FLSA) and improve payroll processes and overtime payments. In addition, we found several practices in the District that have an impact on the overall payroll functions which need to be addressed to enhance operations and/or improve internal controls. We have made several recommendations to remedy these conditions.
The Audit Committee reviewed and approved this report for transmittal to the School Board during the Committee_s June 20, 2003 meeting.
There is no financial impact to the School District.
Requested Action
** ADDITIONAL INFORMATION
Receive Review of the Payroll Processes, Overtime and SAP/R3 HR Payroll Application.
Summary
In accordance with the 2002-2003 Audit Plan, the Office of Management/Facility Audits performed a "Review of the Payroll Processes, Overtime and the SAP/R3 HR Payroll Application." It includes a review of the payroll processes, which included a review of employee_s covered under the Fair Labor Standards Act of 1938 (FLSA), overtime procedures and payments, site visits and a review of various SAP/R/3 HR Payroll Application records and available payroll reports. The objectives of the review were to determine whether current payroll processes and related internal controls have been established and are adequate, pursuant to sound business practices and are in compliance with applicable laws, regulations, and Board Policy, and to determine whether the organizational structure and payroll processes were adequate to assure that the operations were proficiently executed.
We noted a significant weakness in the control environment as it relates to the payroll processes, overtime and the SAP/R3 HR Payroll Application. We identified several payroll processes that need to be corrected in order to comply with the Fair Labor Standards Act of 1938 (FLSA) and improve payroll processes and overtime payments. In addition, we found several practices in the District that have an impact on the overall payroll functions which need to be addressed to enhance operations and/or improve internal controls. We have made several recommendations to remedy these conditions.
The Audit Committee reviewed and approved this report for transmittal to the School Board during the Committee_s June 20, 2003 meeting.
School Board Goals
| Goal 3 - All operations of the school system will demonstrate best practices while supporting student achievement. | ||
| Goal 4 - All stakeholders will work together to build a better school system. |
Financial Impact
There is no financial impact to the School District.
Source of Additional Information
Patrick Reilly, 765-6421 null
Associated File Attachments
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* Audit Report (Files) | |
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**Additional Information (Files) | |
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ExecutedARF (Files) |