Have you checked your payroll controls?

October 23, 2016

Do you have adequate controls in place over your payroll activities?  Do you know who is paid every pay period?

Does your outsourced service provider have adequate controls in place over your payroll and employee data? 

Do you and/or your service provider maintain adequate records to support payroll processing?

A recent, independent review of a large outsourced payroll service provider found inadequate controls over payroll activities, including:

  • New starters
  • Terminated employees
  • Basic pay variations, such as allowances and deductions
  • Casual and timesheet payments
  • Out-of-cycle
  • Executive and Board Member pays.

Issues included human error, inadequate checking and peer review mechanisms, missing documentation, and insufficient recordkeeping.

Each of these present risks such as under and over payments, potential industrial disputes and budgetary concerns.  Not to mention the time and good will required to correct such errors.

The Centium Group is available to undertake an assessment of your payroll activities, whether undertaken in-house or by an outsourced service provider, to identify gaps in current controls.

For example, we can:

  • Assess of your current internal systems and controls over payroll activities
  • Assess your policies, processes and work practices to determine whether they support timely and accurate payroll processing (either in-house or by an outsourced service provider)
  • Conduct a gap analysis of any recently undertaken payroll audit against your service provider’s payroll processes
  • Assess the accuracy of inputs gathered for payroll, which are subsequently used as inputs in other areas (e.g. reporting)
  • Conduct an IT audit of your HR and payroll application systems including security and recoverability
  • Conduct a Privacy Impact Assessment to ensure that you meet the requirements of privacy legislation

Our experienced team includes HR/Payroll specialists, financial auditors and HR Information System experts with 20+ years’ experience their respective fields.

We assemble a project team based on the size of your agency and the nature of any concerns that you might have.  We would then work with you to deliver proven solutions that are clear, logical, pragmatic and easy to implement.

To find out more about how we can leverage our decades of experience to assist your organisation, contact us for a chat.

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