payroll system

Dept manager not always approve all employees’ holiday forms

• E- unauthorized leave and difficult if shortages of staff at critical periods

  I-Error in payment for unauthorized leave as holiday record incorrect

• Written confirmation that holiday has been approved should received by employees

   

  Any payment for unused holiday should be authorised by dept managers prior payment

• All overtime should be authorised by responsible official before processed to payroll dept

  Authorisation evidenced with signature

• E- payments without proof of identity/signature; risk of wages paid to incorrect employees

  I-error/fraud result in loss of cash

• E-not be using appropriate documentation to procedures of processing new drivers

  I-not being set up correctly; late payment of wages; incorrect statutory deductions and incomplete payroll records

FC prepares and authorizes bank transfer for payroll to be paid

• E- lack of SOD , FC could pay themselves/certain employees more without being detected

  I-Increase risk of fraud/error

• Passed to FD to be reviewed and authorised after the bank transfer has been prepared by FC

   

  The review of authorization should be evidenced by signature of FD

• E- Result in errors/ unauthorized changes made

  I-Incorrect payment of wages and increased risk of fraud

• Password to amend data changed and only to senior members of payroll dept

   

  Edit reports should generated for standing data changes with details of authorization and regularly reviewed by responsible official and evidenced the review with signature

Senior payroll manager review bank transfer and adjust if any discrepancies

• E- Lack of SOD, incorrect adjustment /incorrect amounts paid to employees

  I-increase risk of fraud/ incorrectly amend amounts to paid certain employees

• 1.Senior payroll manager should not be able to process changes to payroll system as well as authorize payments.

  2.Investigate any discrepancies and required to adjust in record

  3. The authorization of bank transfer listing should undertaken by outside payroll dept (FD)

• E-errors made by clerk will not be identified; new employee not being paid at all, errors made in payments for new joiners/leaver

  I-loss of employee goodwill and errors in accounting records for wages and salaries

  I-increased risk of fraud as fictitious employee could added by clerk

• All staff including temporary staff should only be processed by HR dept to ensure correct procedure

   

  If not possible, HR dept should review joiner/leaver and authorize before sent to payroll dept

   

  Payroll dept should not accept any joiner unless approved by HR

Payroll clerk amends payroll and edit report of changes is not reviewed

• E-errors made by clerk will not be identified; new employee not being paid at all, errors made in payments for new joiners/leaver

  I-loss of employee goodwill and errors in accounting records for wages and salaries

  I-increased risk of fraud as fictitious employee could added by clerk

• Payroll supervisor/ member of finance dept review edit reports and agree changes made to details on joiner/leavers.

  Any discrepancies should investigate

   

  Payroll supervisor evidenced their review on edit report with signature

• E- unauthorized leave and difficult if shortages of staff at critical periods

  I-Error in payment for unauthorized leave as holiday record incorrect

• Passed to FD to be reviewed and authorised after the bank transfer has been prepared by FC

   

  The review of authorization should be evidenced by signature of FD

All members of payroll can amend standing data as the have access to password

• E- Result in errors/ unauthorized changes made

  I-Incorrect payment of wages and increased risk of fraud

• Password to amend data changed and only to senior members of payroll dept

   

  Edit reports should generated for standing data changes with details of authorization and regularly reviewed by responsible official and evidenced the review with signature

• E- Lack of SOD, incorrect adjustment /incorrect amounts paid to employees

  I-increase risk of fraud/ incorrectly amend amounts to paid certain employees

• Passed to FD to be reviewed and authorised after the bank transfer has been prepared by FC

   

  The review of authorization should be evidenced by signature of FD

Operation managers processed temporary new drivers and notified payroll

• E-not be using appropriate documentation to procedures of processing new drivers

  I-not being set up correctly; late payment of wages; incorrect statutory deductions and incomplete payroll records

• All staff including temporary staff should only be processed by HR dept to ensure correct procedure

   

  If not possible, HR dept should review joiner/leaver and authorize before sent to payroll dept

   

  Payroll dept should not accept any joiner unless approved by HR

Overtime

Operation managers only authorize overtime in excess 5 hours/week

• E- Employees could claim to have worked up to 5 hrs overtime without authorization

  I-additional payroll cost

• All overtime should be authorised by responsible official before processed to payroll dept

  Authorisation evidenced with signature

• E- payments without proof of identity/signature; risk of wages paid to incorrect employees

  I-error/fraud result in loss of cash

• Clocking in and out supervised by responsible official to prevent one individual swipe for multiple employees

  Supervisor random check of employees by reviewing who swipe card and confirm they are present

Overtime

Overtime worked not authorize before being paid

• E- unauthorized overtime

  I-Incorrect amounts paid/ increase payroll cost

• All overtime should be authorised by responsible official before processed to payroll dept

  Authorisation evidenced with signature

• 1. Review the overtime report for evidence of authorization and ensure that this was taken before payment

• All drivers should provide a form of identification to finance team before collect cash pay packets and they signed

• E-Employees swiped as present but they are not

  I-Increased payroll cost

Only provide name to collect pay packet

• E- payments without proof of identity/signature; risk of wages paid to incorrect employees

  I-error/fraud result in loss of cash

• All drivers should provide a form of identification to finance team before collect cash pay packets and they signed

• Clocking in and out supervised by responsible official to prevent one individual swipe for multiple employees

  Supervisor random check of employees by reviewing who swipe card and confirm they are present

• E-not sufficiently independent and payments without proof of identity

  I-pay more to family/friends and risk of wages paid to incorrect employees

Production supervisor distribute pay packets

• E-not sufficiently independent and payments without proof of identity

  I-pay more to family/friends and risk of wages paid to incorrect employees

• Pay packets should distributed by payroll dept directly to employees with identification

   

  Reconcile pay packets issued by supervisor with wages signed by employee and investigate any differences immediately

• E- unauthorized overtime

  I-Incorrect amounts paid/ increase payroll cost

• All overtime should be authorised by responsible official before processed to payroll dept

  Authorisation evidenced with signature