1. Entering, Approving, and Reconciling Payroll- Time and Labor APM 55.60.02

2. 2 Course Objectives Gain an understanding of the policy Discuss recommended procedures Discuss segregation of duties for payroll activities

3. 3 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

4. 4 Payroll Duties

5. 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

6. Time Keeper Suggested Tasks Reasonability test data entered Monitor for expired appointments May review Payroll Comparison report 6

7. Time Keeper Required Functions Enter and maintain delegates Communicate with Payroll and HR offices 7

8. 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

9. Approver Objectives Authorize time entered Ensure time entered is accurate Ensure all time is submitted Review for missed punches 9

10. 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

11. Approver Required Output Time and absences are approved in Time and Labor for monthly and bi-weekly 11

12. Verification / Reconciliation Overview Should not be performed by Approver or Timekeeper 12

13. Verification / Reconciliation Objectives Verify changes are appropriate and accurate Ensure payroll is complete Validate General Ledger Entries Validate on EDR Review for expired appointments Nothing UnauthorizedAdditional Pay amounts Rate of PayHours Earnings codeValidate ChartFields 13

14. Verification-Verify Changes USHR0087 14

15. Verification-Verify Changes Verify Accuracy & Appropriateness of Changes Look for changes that are missing. 15

16. Verification-Verify Changes Print - Sign - Date and Retain 16

17. Verification-Verify Changes Research any unauthorized changes in pay amount for exempt employees 17

18. Verification-Verify Changes Look for changes that were not made. 18

19. Verification-Verify Changes Print – Sign – Date – and Retain 19

20. 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

21. 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

22. Verify – Validate Information EDR USHR0193S 22

23. The total payroll expense for the department in total should be compared From the EDR To the Income Statement Verification – General Ledger 23

24. Verification – General Ledger Complete the Checklist for payroll transactions Review non-PRL sourced entries Payroll Correcting Entries Journal Entries Vouchers 24

25. Verify — Reconcile 25

26. Verify — Reconcile 26

27. Verify — Reconcile There is a difference 27

28. Verify — Reconcile 28

29. Verify — Reconcile Note the resolution of the reconciling items 29

30. Verify — Reconcile Sign, Date, and retain the reconciliation 30

31. Verification / Reconciliation Required Outputs Signed EDR Signed Pay Comparison Report (USHR0087) Reconciliation or completed Checklist 31

32. Managerial Review Overview At least Quarterly Frequency dependent upon control environment By Department Head or Designated Administrator 32

33. 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

34. 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

35. Managerial Review Required Output Signed EDR Pay Comparison Report (USHR00087) Checklist or Reconciliation 35

36. Why Segregate Duties? Segregation--One person only performs one task: Record Approval Verify Managerial Review Benefits of segregation Deters fraud Detects errors 36

37. 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

38. Segregation—Levels of Review 38

39. 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

40. Additional Information University Accounting Policy Entering, Approving, and Reconciling Payroll – Time and Labor – APM 55.60.02 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