Payroll Standard Operating Procedure 1.0: Fiscal Officer Responsibility

SUBJECT:

Fiscal Officer's  Procedures to Ensure Compliant,  Accurate and Timely Payroll Processing

SOURCE:

Financial Management Services

ORIGINAL DATE
OF ISSUE:

August, 2010

DATE OF
LAST REVISION:
June, 2011
PSOP NO: 1.0
RATIONALE:

To outline the Fiscal Officer's responsiblity when it comes to ensuring accurate payroll processing within their department (s).

PSOP:

1.  The Fiscal Officer is responsible for ensuring a proper segregation of duties in their area in order to prevent fraud.  This includes the following:

  1. The Fiscal Officer must ensure that the Fiscal Approver is not a Payroll Processor.  Fiscal officers can run the HRMS Departmental Security IUIE report to identify  their departmental payroll processors and fiscal approvers.  It is located in the following folders: 
    1. Departmental Reporting > Bloomington Business Officers Group > HRMS Reports > HRMS Departmental Security
    2. Departmental Reporting > IUPUI Fiscal Officers Group > HRMS Reports > HRMS Departmental Security
    3. Departmental Reporting > Payroll Reports-Departmental > HRMS Departmental Security
  2. When Payroll Processors leave the department or change roles, the Fiscal Officer is responsible for requesting that the Payroll Processor's HRMS access is either modified or deleted using the HRMS Access Request form: http://www.indiana.edu/~uhrs/hrms/support/f_approve.shtml
  3. The Fiscal Officer is responsible for ensuring that somebody other than the Payroll Processor approves the Payroll Processor's timesheet.

2.  The Fiscal Officer is responsible for ensuring that the Fiscal Approver is reviewing the Fiscal Approver report for inaccuracies prior to payday.   The Fiscal Officer is also able to run a payroll report in the IUIE so the Fiscal Officer themselves can reveiw the payroll report, although it is not required.  Items that must be reviewed include:

  1. Reviewing the names on the report to verfiy that they are employed by the department.
  2. Review overtime for reasonableness.  If excessive overtime is noted, it should be addressed.
  3. Verify that any terminal pay is consistent with the department's expectations. 
  4. Review any additional pays for accuracy.  These can be identified by object code on the report.
  5. Check the total to be paid for reasonableness.  This will vary by the size of the department's payroll.  The Fiscal Officer should work with the Fiscal Approver to set a standard for variance in the total payroll.

Larger departments are often unable to verify payroll detail by person, so they should take the following steps to ensure that their payroll is accurate:

  1. Review all Associate Instructors and Adjunct Faculty at the beginning of each semester to ensure that they are still employed by the department. 
  2. Periodically send lists of hourly employees to each supervisor, asking them to identify any who have terminated.

3.  The Fiscal Officer is responsible for ensuring that the TIME Approver is the appropriate person for that role.  They should also periodically review their TIME Approvers to verify that they are still active employees.  Payroll will provide a quarterly report of TIME Approvers to each department, until an IUIE report can be written.  

The Fiscal Officer is also responsible for ensuring that TIME Approvers and Payroll Process are approving their timesheets and that Payroll Processors are approving the payroll vouchers.  The Fiscal Officer should be using the IUIE TIME super approval report to identify TIME Approvers and Payroll Processors who are allowing the TIME system to super approve the department's timesheets.   It can be located using the following path:
Master Catalog / Human Resource Management System / Payroll / Timekeeping / KPME Reports / Auto Approved Timesheet Detail

The Central Payroll office will notify Fiscal Officers when a payroll processor does not approve their payroll vouchers.  It is incumbent on the Fiscal Officer to rectify these situations when they are identified.

4.  The Fiscal Officer is responsible for ensuring that the Payroll Processor are looking for enroute e-docs that affect payroll prior to the payroll closing. If any potential issues arise as the result of an enroute e-doc, the Payroll Processor must take action to avoid any resulting payroll issues.  The e-docs that potentially affect payroll are:

  1. Hire e-doc:  If a new employee's hire e-doc is not final prior to the payroll closing, they will not be paid.  These employees should be added to the next off cycle payroll.
  2. Termination e-doc:  If an employee's termination date is prior to the end of the pay period, the employee should be removed from the payroll so they are not overpaid.
  3. Maintain pay rate e-doc:  If an employee recieves a pay change during the pay period, it's important to verify that they will be paid the correct amount to avoid overpayment or underpayment. 

5.  The Fiscal Officer is responsible for ensuring their department is complying with all University payroll policies located at:  
http://policies.iu.edu/policies/categories/financial/index.shtml

6.  The Fiscal Officer is responsible for monitoring overpayments that occur and that proper action is being taken to ensure the overpayment is collected.  The Fiscal Officer is also responsible for ensuring that proper procedures are in place to prevent overpayments.  These procedures include, but are not limited to, the above 5 SOP procedures. 

Other tools include the Overpayment Policy located at: FIN-PAY-IV-280 and the Overpayment Procedures SOP located at: PSOP 2.0 Overpayment

DEFINITIONS:

Fiscal Officer: Person who is trained and hired for the purpose of providing fiscal, policy, and internal control management of all funds in a unit. They are responsible for ensuring that processes and related controls have been established to achieve the mission and objectives of their organization(s). 

Fiscal Approver: Person authorized to approve all HRMS financial transactions.
 

CROSS
REFERENCE:
See the following policies:
Recording of Timekeeping in TIME: FIN-PAY- IV-270 

Role of Fiscal Officer, Account Manager, and Account Supervisor: FIN-ACC-1-1

Payroll Overpayment Processing: FIN-PAY-IV-280

Overpayment Processing Procedures: Payroll PSOP 2.0
RESPONSIBLE
ORGANIZATION:
Financial Management Services