[pps-news] Check and Direct Deposit Earnings Statement Distribution

[Gabe Nwandu]

June 24, 2010

 

To:     All Departments

Fr:      Payroll Office

Re:     Check and Direct Deposit Earnings Statement Distribution

________________________________


Internal Audit and Advisory services recently concluded an audit which revealed that payroll checks were received and distributed by departmental employees having payroll processing responsibilities in violation of University policy.  Business and Finance Bulletin (BFB) IA-101, Internal Control Standards: Departmental Payrolls, provides, among other things, that "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." 

BFB IA-101 is posted in the Payroll Office's website <http://www.accounting.ucr.edu/payroll.htm>  under Internal Control Standards- Depts <http://www.ucop.edu/ucophome/policies/bfb/ia101.pdf>  or Policies <http://www.accounting.ucr.edu/payrollpolicy.htm> .  

 

Here's an excerpt from section III.C - Departmental Check and Direct Deposit Earnings Statement Distribution 

 

1.    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. 

2.    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. 

3.    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. 

4.    When a check or earnings statement is released to someone other than the payee, the custodian shall: 

.         require proper identification, 

.         require an authorization signed by the payee to release the check or statement, and 

.         obtain a signed receipt which will be retained by the custodian. 

5.   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. 

6.    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. 

 

Thank you

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