Audit Objective

Determine whether College officials (officials) established adequate internal controls over:

• The retiree health insurance contribution billing process.
• The payroll process.

Key Findings

Officials did not:

• Properly account for retiree health insurance billings.
• Ensure the continued eligibility of retirees, and inappropriately paid $2,092 in premiums for two deceased individuals.
• Segregate payroll duties or perform supervisory review.

Key Recommendations

• Ensure that comparisons are performed to determine status of retiree health insurance accounts.
• Attempt to recover premiums paid for deceased enrollees from the health insurance provider.
• Establish adequate segregation of duties within the College’s payroll process.
• Ensure that payroll registers are certified.

College officials agreed with our recommendations and indicated they have initiated corrective action.