Capital School District Local Fund Performance Audit FY22

… and agreed each employee’s salary in the State’s payroll system , Payroll and Human Resource Statewide Technology (PHRST), to the District’s approved FY 2022 salary schedules. We selected a random sample of four bi-weekly payroll cycle …

… ion 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, …

… that the Director of Human Resources reviewed and approve d the payroll transaction prior to their processing into PHRST. We found the following:  Fifteen of the transactions tested had an Employee Recommendation For Hire/Request For …

… been sent to the Director of Human Resources for review had been reviewed and approved prior to being processed in PHRST. The District also does not have a pro cess in place to properly revi ew human resources and payroll transactions …

… s in place to properly revi ew human resources and payroll transactions after the transaction has been processed into PHRST, to ensure that payroll was entered properly into the system. The district also does not memorialize the review o …

… hanges to employee payro ll, the District increases its risk that erroneous or fraudulent information is entered into PHRST. Without proper review or memorialization of review, after entry into PHRST, the risk increases that erroneous or fr …

… fraudulent information is entered into PHRST. Without proper review or memorialization of review, after entry into PHRST, the risk increases that erroneous or fraudulent information entered will not be detected. Recommendation: We re …

… ument review and approval procedures for payroll changes.  Review its procedures to review entries after entry to PHRST and adopt procedures to memorialize that review. View of Responsible Dist rict Officials and Plan ned Corrective …