Capital School District Local Funds Performance Audit FY23

… 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 2023 salary schedules. We determined that authorized personnel at the District did …

… ration of the District’s payroll controls: The District’s controls over the authorization of payroll changes prior to PHRST entry are not operating in the manner in which the District’s policies were designed. Of the 40 transactions tested: …

… nce that the Director of Human Resources reviewed and approved the payroll transaction prior to their processing into PHRST. • The District does not maintain support documenting the hiring process or changes in pay rate for substitute teach …

… cess 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 revi ew of the bi …

… 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 …

… ration and review processes over payroll changes to ensure that changes are properly reviewed prior to processing in PHRST as required by the Payroll Internal Control Plan Questionnaire (PICP-Q).  Formal documentation of formal review …

… cumentation related to employee salary decisions.  Implementation of procedures to review entries after entry to PHRST and adoption of procedures to memorialize that review.  Creation of a formal manual for payroll internal contro …