Some local units of government have run into problems with employee timekeeping and payroll procedures. To avoid this potential pitfall, we encourage government entities to design and implement a system of internal controls in order to ensure that timekeeping and payroll methods are accurate and reliable.
A good internal control policy should include, for employees paid on an hourly or daily basis:
- Reports of hours or days worked, not just reports of hours or days absent;
- Employee and supervisor verification of hours worked;
- Education procedures to help users protect their personal information;
- Affirmation of carry-forward amounts for vacation and sick leave; and
- A hold-back period to allow for the review and approval of timekeeping documents.
For more information, see our Statement of Position on Employee Timekeeping Procedures at: http://www.auditor.state.mn.us/default.aspx?page=20110607.012.
Date this Avoiding Pitfall was most recently published: 08/02/2013