Capital School District Local Funds Performance Audit FY24

… State’s First State Financials Accounting System (FSF) and the State’s Payroll Human Resour ce Statewide Technology (PHRST) system for our Performance Audit. This conclusion was based on our review of the following documents: a. The St …

… agreed each employee’s salary profile in the State’s payroll system, Payroll and Human Resource Statewide Technology (PHRST), to the District’s approved FY 2024 salary schedules. We selected a random sample of 5 of 26 bi-weekly payroll cy …

… es s in place to properly review human resources and payroll transactions after the transaction has been processed in PHRST to ensure that payroll was entered properly into the system. • The District does not memorialize the review of th …

… District’s during fiscal year 2024 • The District’s controls over the au thorization of payroll changes prior to PHRST entry are not operating in the manner in which the District’s policies were designed. Of the 60 transactions tested: …

… ere no t appropriately reviewed and approved by the Human Resource Department prior to the transactions processing in PHRST. o Supporting documentation for 18 employee payroll transactions was not available for testing for various payr …

… g supporting documentation, the District increases its risk that errone ous or fraudulent information is entered into PHRST. Without proper review or memorialization of review, after entry into PHRST, there is an increased risk that erroneou …

… or fraudulent information is entered into PHRST. Without proper review or memorialization of review, after entry into PHRST, there is an increased risk that erroneous or fraudulent information entered will not be detected. Recommendati …

… aration and review processes over payroll changes to ensure that changes are properly reviewed prior to processing in PHRST as required by the PICP-Q. • Formal documentation of formal review and approval procedures for payroll changes. C …