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Audit Objective

Determine whether employees received proper wages and overtime payments in accordance with contract terms and if leave was properly tracked.

Key Findings

• Payroll calculation errors cost the District $3,638 and errors totaling $9,100 occurred with manual leave accrual entries. In addition, five employees had 21 time sheets lacking proper approvals and two employees had eight time sheets that were missing.
• The former payroll supervisor worked overtime hours that were not supported. Also, she did not record taking a lunch break on 297 of 315 days, resulting in overtime or extra pay.
• Errors occurred in the leave records maintained for 13 of the 26 (50 percent) employees tested.

Key Recommendations

District officials should:

• Consider automating the time keeping system to reduce calculation errors.
• Obtain proper approved time sheets prior to paying employees.
• Ensure overtime is approved prior to employees working overtime and monitor lunch breaks.
• Develop and implement written procedures to ensure the accuracy of employee leave records.

District officials disagreed with certain aspects of our findings and recommendations, but indicated they planned to implement our recommendations. Appendix B includes our comments on the issues raised in the District’s response letter.