Payroll Time and Labor Management Overview
Entering, Approving, and
Reconciling Payroll-
Time and Labor
APM 55.60.02
Course Objectives
•
Gain an understanding of the policy
•
Discuss recommended procedures
•
Discuss segregation of duties for payroll
activities
Definitions
•
EDR—Expense Distribution Report, a report
listing employees and the ChartFields they
were paid from
•
Pay Comparison Report—Listing of employees
whose rate of pay has changed from the
previous period
Payroll Duties
Time Keeper
Overview
•
All employees enter their own time
•
Exempt enter absences
•
Non-exempt enter time and absences
•
Paper timesheets not required
•
May adjust time as necessary
•
May review exception reports
5
Time Keeper
Suggested Tasks
•
Reasonability test data entered
•
Monitor for expired appointments
•
May review Payroll Comparison report
6
Time Keeper
Required Functions
•
Enter and maintain delegates
•
Communicate with Payroll and HR offices
7
Approver
Overview
•
Should be a supervisor
•
Authorized by Department Management
•
Approval may be delegated
•
Not the same person who performs the
verification
•
The system documents approval
•
Approves time entered (not payroll amounts)
8
Approver
Objectives
•
Authorize time entered
•
Ensure time entered is accurate
•
Ensure all time is submitted
•
Review for missed punches
9
Approver
Activities
•
Review Payroll Comparison Report
•
Review EDR
•
Review payroll amounts—
View Gross Pay inquiry screen
•
Review bi-Weekly time and monthly absences
for accuracy and appropriateness
10
Approver
Required Output
•
Time and absences are approved in Time and
Labor for monthly and bi-weekly
11
Verification / Reconciliation
Overview
Should not be performed by Approver or
Timekeeper
12
Verification / Reconciliation
Objectives
•
Verify changes are appropriate and accurate
•
Ensure payroll is complete
•
Validate General Ledger Entries
•
Validate on EDR
•
Review for expired appointments
13
Verification-Verify Changes
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14
Verification-Verify Changes
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15
Verification-Verify Changes
Print - Sign - Date
and Retain
16
Verification-Verify Changes
Research any unauthorized
changes in pay amount for exempt
employees
17
Verification-Verify Changes
18
Verification-Verify Changes
Print – Sign – Date – and
Retain
19
Verify– Validate Information
USHR Reports
•
Do not use USHR0112
•
Not Based on Payroll System
•
USHR0173 Used for Employee Detail
•
Expense Distribution Reports (EDR)
•
Summary (e.g., USHR0193S)
•
Detail (monthly and bi-weekly payruns
e.g. USHR0193M/B)
20
Verify– Validate Information
Expense Distribution Reports
•
Three groupings within each EDR type
•
USHR0193 summarizes by DeptID
•
USHR0208 summarizes by Program
•
USHR0209 summarizes by Project
21
Verify – Validate Information
E
D
R
U
S
H
R
0
1
9
3
S
22
The total payroll expense for the
department in total should be compared
From the EDR
To the Income Statement
Verification – General Ledger
23
Verification – General Ledger
•
Complete the Checklist for payroll transactions
•
Review non-PRL sourced entries
•
Payroll Correcting Entries
•
Journal Entries
•
Vouchers
24
Verify — Reconcile
25
Verify — Reconcile
26
Verify — Reconcile
There is a difference
27
Verify — Reconcile
28
Verify — Reconcile
29
Verify — Reconcile
Sign, Date, and
retain the
reconciliation
30
Verification / Reconciliation
Required Outputs
•
Signed EDR
•
Signed Pay Comparison Report (USHR0087)
•
Reconciliation or completed Checklist
31
Managerial Review
Overview
•
At least Quarterly
•
Frequency dependent upon control environment
•
By Department Head or Designated
Administrator
32
Managerial Review
Objectives
•
Review detailed enough to determine:
•
Authorized transactions accurately recorded
•
Timely transactions in General Ledger
•
Adequate controls exist
•
Payroll amount is reasonable
33
Managerial Review
Activities
•
Review the EDR
•
Review USHR0087
•
Review the Income Statement
•
Review any reconciling items
•
Ensure verification/reconciliations were timely
•
Retain documentation in department
34
Managerial Review
Required Output
•
Signed
•
EDR
•
Pay Comparison Report (USHR00087)
•
Checklist or Reconciliation
35
Why Segregate Duties?
•
Segregation--One person only performs one
task:
•
Record
•
Approval
•
Verify
•
Managerial Review
•
Benefits of segregation
•
Deters fraud
•
Detects errors
36
Segregation-Compensating Controls
•
When less than optimal segregation exists,
implement compensating controls
•
Compensating controls include:
•
Managerial review for every pay cycle
•
Perform detailed managerial reviews
•
Share resources with other departments
37
Segregation—Levels of Review
38
•
Keep roles segregated if possible
•
With optimal segregation-mangers must
document their review of at least one pay
cycle per quarter for each DeptID, Program, or
Project as appropriate
•
Verifier must sign the EDR, USHR0087, and
either complete Checklist or Reconciliation
Summary
39
Additional Information
•
University Accounting Policy Entering, Approving,
and Reconciling Payroll – Time and Labor –
APM 55.60.02
•
Other related training available:
•
Financial Compliance Training Website
•
Contact your Campus Accounting Office for
departmental training sessions or further discussion
40
Gain key insights into entering, approving, and reconciling payroll time and labor activities. Understand policy guidelines, recommended procedures, and segregation of duties. Dive into definitions, duties of timekeepers, recommended tasks, and essential functions. Enhance your proficiency in payroll management with this comprehensive guide.
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Presentation Transcript
Entering, Approving, and Reconciling Payroll- Time and Labor APM 55.60.02
Course Objectives Gain an understanding of the policy Discuss recommended procedures Discuss segregation of duties for payroll activities 2
Definitions EDR Expense Distribution Report, a report listing employees and the ChartFields they were paid from Pay Comparison Report Listing of employees whose rate of pay has changed from the previous period 3
Payroll Duties Time Keeper Approver Verification / Reconciliation Verify completeness Verify changes were made Verify accuracy in General Ledger Managerial Review Reasonability Prior steps done Reconciling items are appropriate Authorize time Ensure accuracy Ensure time is entered and approved Objective Objective Maintain delegates May adjust time Review Gross Pay Inquiry screens Review BIW time Review MON absences Expired Appointments Verify everyone is included Additional Pay is accurate EarnCodes are accurate Appropriate ChartFields Reconciliation of EDR to GL Test reasonability of payroll, trend analysis Verify prior steps are completed Reconciling items appear appropriate Review USHR0087 and EDR for unusual or unanticipated payroll items Activities Activities Review EDR to assure pay includes only appropriate persons Review USHR0087 Approval in Time & Labor Completed checklist or prepared reconciliation AND Signed EDR, and USHR0087 Signed checklist or reconciliation AND Signed EDR, and USHR0087 Required Output Required Output 4
Time Keeper Overview All employees enter their own time Exempt enter absences Non-exempt enter time and absences Paper timesheets not required May adjust time as necessary May review exception reports 5
Time Keeper Suggested Tasks Reasonability test data entered Monitor for expired appointments May review Payroll Comparison report 6
Time Keeper Required Functions Enter and maintain delegates Communicate with Payroll and HR offices 7
Approver Overview Should be a supervisor Authorized by Department Management Approval may be delegated Not the same person who performs the verification The system documents approval Approves time entered (not payroll amounts) 8
Approver Objectives Authorize time entered Ensure time entered is accurate Ensure all time is submitted Review for missed punches 9
Approver Activities Review Payroll Comparison Report Review EDR Review payroll amounts View Gross Pay inquiry screen Review bi-Weekly time and monthly absences for accuracy and appropriateness 10
Approver Required Output Time and absences are approved in Time and Labor for monthly and bi-weekly 11
Verification / Reconciliation Overview Should not be performed by Approver or Timekeeper 12
Verification / Reconciliation Objectives Verify changes are appropriate and accurate Ensure payroll is complete Validate General Ledger Entries Validate on EDR Nothing Unauthorized Additional Pay amounts Rate of Pay Hours Earnings code Validate ChartFields Review for expired appointments 13
Verification-Verify Changes USHR0087 14
Verification-Verify Changes Verify Accuracy & Appropriateness of Changes Look for changes that are missing. 15
Verification-Verify Changes Print - Sign - Date and Retain 16
Verification-Verify Changes Research any unauthorized changes in pay amount for exempt employees 17
Verification-Verify Changes Look for changes that were not made. 18
Verification-Verify Changes Print Sign Date and Retain 19
Verify Validate Information USHR Reports Do not use USHR0112 Not Based on Payroll System USHR0173 Used for Employee Detail Expense Distribution Reports (EDR) Summary (e.g., USHR0193S) Detail (monthly and bi-weekly payruns e.g. USHR0193M/B) 20
Verify Validate Information Expense Distribution Reports Three groupings within each EDR type USHR0193 summarizes by DeptID USHR0208 summarizes by Program USHR0209 summarizes by Project 21
Verify Validate Information EDR USHR0193S 22
Verification General Ledger The total payroll expense for the department in total should be compared From the EDR To the Income Statement 23
Verification General Ledger Complete the Checklist for payroll transactions Review non-PRL sourced entries Payroll Correcting Entries Journal Entries Vouchers 24
Verify Reconcile There is a difference 27
Verify Reconcile Note the resolution of the reconciling items 29
Verify Reconcile Sign, Date, and retain the reconciliation 30
Verification / Reconciliation Required Outputs Signed EDR Signed Pay Comparison Report (USHR0087) Reconciliation or completed Checklist 31
Managerial Review Overview At least Quarterly Frequency dependent upon control environment By Department Head or Designated Administrator 32
Managerial Review Objectives Review detailed enough to determine: Authorized transactions accurately recorded Timely transactions in General Ledger Adequate controls exist Payroll amount is reasonable 33
Managerial Review Activities Review the EDR Review USHR0087 Review the Income Statement Review any reconciling items Ensure verification/reconciliations were timely Retain documentation in department 34
Managerial Review Required Output Signed EDR Pay Comparison Report (USHR00087) Checklist or Reconciliation 35
Why Segregate Duties? Segregation--One person only performs one task: Record Approval Verify Managerial Review Benefits of segregation Deters fraud Detects errors 36
Segregation-Compensating Controls When less than optimal segregation exists, implement compensating controls Compensating controls include: Managerial review for every pay cycle Perform detailed managerial reviews Share resources with other departments 37
SegregationLevels of Review Time Keeper 1 1 1 1 1 Manager 1 1 Manager 1 Manager Verifier/ Reconciler 3 1 2 1 2 1 Manager 2 1 Manager Manager Managerial Review Manager Manager Manager Manager Manager Manager Manager Manager Manager Manager Manager Detail or High Level High level High level High level High level High level Detail Detail Detail Detail Approval 2 2 1 Manager Manager Manager 2 2 1 Manager Manager Frequency Quarterly Quarterly Quarterly Quarterly Quarterly Quarterly Pay Cycle Pay Cycle Pay Cycle Unacceptable Unacceptable 38
Summary Keep roles segregated if possible With optimal segregation-mangers must document their review of at least one pay cycle per quarter for each DeptID, Program, or Project as appropriate Verifier must sign the EDR, USHR0087, and either complete Checklist or Reconciliation 39
Additional Information University Accounting Policy Entering, Approving, and Reconciling Payroll Time and Labor APM 55.60.02 Other related training available: Financial Compliance Training Website Contact your Campus Accounting Office for departmental training sessions or further discussion 40
