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<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'>June
24, 2010<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'>To: All
Departments<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'>Fr: Payroll
Office<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'>Re: </span><span
style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif";color:black'>Check
and Direct Deposit Earnings Statement Distribution</span><span
style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'><o:p></o:p></span></p>
<div class=MsoNormal align=center style='text-align:center'><span
style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'>
<hr size=2 width="100%" align=center>
</span></div>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'><br>
Internal Audit and Advisory services recently concluded an audit which revealed
that <b>payroll checks were received and distributed by departmental employees
having payroll processing responsibilities</b> in violation of University
policy. Business and Finance Bulletin (BFB) IA-101, <i>Internal Control
Standards: Departmental Payrolls</i>, provides, among other things, that
“<span style='color:black'>An employee authorized to approve payroll
documents may not also have responsibility for reviewing Distribution of
Payroll Expense reports (PPP5302) or for distributing paychecks or earnings
statements.” <br>
<br>
</span>BFB IA-101 is posted in the <a
href="http://www.accounting.ucr.edu/payroll.htm">Payroll Office’s website</a>
under <a href="http://www.ucop.edu/ucophome/policies/bfb/ia101.pdf"
target="_blank">Internal Control Standards- Depts</a><b> </b>or <a
href="http://www.accounting.ucr.edu/payrollpolicy.htm">Policies</a>. <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'>Here’s
an excerpt from section III.C - </span><span style='font-size:12.0pt;
font-family:"Trebuchet MS","sans-serif";color:black'>Departmental Check and
Direct Deposit Earnings Statement Distribution <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoListParagraph style='text-indent:-.25in;mso-list:l2 level1 lfo3;
text-autospace:none'><![if !supportLists]><span style='font-size:12.0pt;
font-family:"Trebuchet MS","sans-serif";color:black'><span style='mso-list:
Ignore'>1.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span
style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif";color:black'>Payroll
checks and direct deposit earnings statements shall be distributed in
accordance with earnings disposition forms signed by the employees, within the
distribution options provided by campus policy. <o:p></o:p></span></p>
<p class=MsoListParagraph style='text-indent:-.25in;mso-list:l2 level1 lfo3;
text-autospace:none'><![if !supportLists]><span style='font-size:12.0pt;
font-family:"Trebuchet MS","sans-serif";color:black'><span style='mso-list:
Ignore'>2.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span
style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif";color:black'>Checks
and earnings statements awaiting distribution to employees shall be kept in
locked storage accessible only to a check custodian and an alternate who have
been formally assigned responsibility for the checks and statements. <o:p></o:p></span></p>
<p class=MsoListParagraph style='text-indent:-.25in;mso-list:l2 level1 lfo3;
text-autospace:none'><![if !supportLists]><span style='font-size:12.0pt;
font-family:"Trebuchet MS","sans-serif";color:black'><span style='mso-list:
Ignore'>3.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span
style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif";color:black'>Custodians
who release checks or earnings statements to employees not known to them shall
require presentation of proper identification before checks or statements are
released. <o:p></o:p></span></p>
<p class=MsoListParagraph style='text-indent:-.25in;mso-list:l2 level1 lfo3;
text-autospace:none'><![if !supportLists]><span style='font-size:12.0pt;
font-family:"Trebuchet MS","sans-serif";color:black'><span style='mso-list:
Ignore'>4.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span
style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif";color:black'>When
a check or earnings statement is released to someone other than the payee, the
custodian shall: <o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-indent:-.25in;mso-list:l0 level1 lfo1;
text-autospace:none'><![if !supportLists]><span style='font-size:12.0pt;
font-family:Symbol;color:black'><span style='mso-list:Ignore'>·<span
style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif";
color:black'>require proper identification, <o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-indent:-.25in;mso-list:l0 level1 lfo1;
text-autospace:none'><![if !supportLists]><span style='font-size:12.0pt;
font-family:Symbol;color:black'><span style='mso-list:Ignore'>·<span
style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif";
color:black'>require an authorization signed by the payee to release the check
or statement, and <o:p></o:p></span></p>
<p class=MsoNormal style='margin-left:1.0in;text-indent:-.25in;mso-list:l0 level1 lfo1;
text-autospace:none'><![if !supportLists]><span style='font-size:12.0pt;
font-family:Symbol;color:black'><span style='mso-list:Ignore'>·<span
style='font:7.0pt "Times New Roman"'>
</span></span></span><![endif]><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif";
color:black'>obtain a signed receipt which will be retained by the custodian. <o:p></o:p></span></p>
<p class=MsoListParagraph style='text-indent:-.25in;mso-list:l2 level1 lfo3;
text-autospace:none'><![if !supportLists]><b><span style='font-size:12.0pt;
font-family:"Trebuchet MS","sans-serif";color:black'><span style='mso-list:
Ignore'>5.<span style='font:7.0pt "Times New Roman"'> </span></span></span></b><![endif]><b><span
style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif";color:black'>Any
employee who distributes payroll checks and earnings statements shall not be
authorized to approve payroll documents or to review the Distribution of
Payroll Expense reports. <o:p></o:p></span></b></p>
<p class=MsoListParagraph style='text-indent:-.25in;mso-list:l2 level1 lfo3;
text-autospace:none'><![if !supportLists]><span style='font-size:12.0pt;
font-family:"Trebuchet MS","sans-serif";color:black'><span style='mso-list:
Ignore'>6.<span style='font:7.0pt "Times New Roman"'> </span></span></span><![endif]><span
style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif";color:black'>Unclaimed
payroll checks and earnings statements delivered to departments for
distribution to employees shall be returned promptly to the campus Accounting
Office with an explanation of the department's inability to distribute the
checks or statements. <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'><o:p> </o:p></span></p>
<p class=MsoNormal><span style='font-size:12.0pt;font-family:"Trebuchet MS","sans-serif"'>Thank
you<o:p></o:p></span></p>
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