Washington State University
BUSINESS POLICIES AND PROCEDURES MANUAL

PAYROLL
55.03
Revised 2-11
Payroll Services
335-9575

Internal Control--Payroll

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OVERVIEW

University departments are to develop and maintain a system of internal control for payroll/personnel processing.

Such a system of internal controls provides the following benefits:

The following requirements are based upon State Administrative Accounting Manual (SAAM) 20.20.

SEPARATION OF DUTIES

No single individual should have complete responsibility for hiring, supervising, approving and reviewing payments for, and maintaining records for a University employee. The work of employees handling public assets should be complementary to or checked by other employees.

Departments are to assign the following payroll-related functions to ensure clear separation of duties.

NOTE: A single individual may perform all items in a single category described above but may not perform all items under all categories. EXAMPLE: When processing payroll records for a temporary employee, one individual might create the temporary appointment, enter hours worked into DEPPS, and maintain the records; another individual might approve the temporary appointment, establish work schedules, approve hours review the payroll data in DEPPS.

Small Departments

Some small departments may not have sufficient staff to meet segregation requirements. In such cases, Payroll Services recommends that departments compensate by utilizing either:

RECORDS

Payroll records are to be adequately safeguarded. See 90.01 for University records retention requirements.