PI-23. Payroll controls
Description
This indicator is concerned with the payroll for public servants only: how it is managed, how changes are handled, and how consistency with personnel records management is achieved. Wages for casual labor and discretionary allowances that do not form part of the payroll system are included in the assessment of nonsalary internal controls, PI-25. This indicator contains four dimensions and uses the M1 (WL) method for aggregating dimension scores.
Dimensions and scoring
| Score | Minimum requirements for scores |
|---|---|
23.1. Integration of payroll and personnel records |
|
| A | Approved staff list, personnel database, and payroll are directly linked to ensure budget control, data consistency, and monthly reconciliation. |
| B | The payroll is supported by full documentation for all changes made to personnel records each month and checked against the previous month’s payroll data. Staff hiring and promotion is controlled by a list of approved staff positions |
| C | Reconciliation of the payroll with personnel records takes place at least every six months. Staff hiring and promotion is checked against the approved budget prior to authorization. |
| D | Performance is less than required for a C score. |
23.2. Management of payroll changes |
|
| A | Required changes to the personnel records and payroll are updated at least monthly, generally in time for the following month’s payments. Retroactive adjustments are rare. If reliable data exists, it shows corrections in a maximum of 3% of salary payments. |
| B | Personnel records and payroll are updated at least quarterly and require a few retroactive adjustments. |
| C | Personnel records and payroll are updated at least quarterly and require some retroactive adjustments |
| D | Performance is less than required for a C score. |
23.3. Internal control of payroll |
|
| A | Authority to change records and payroll is restricted, results in an audit trail, and is adequate to ensure full integrity of data. |
| B | Authority and basis for changes to personnel records and the payroll are clear and adequate to ensure high integrity of data. |
| C | Sufficient controls exist to ensure integrity of the payroll data of greatest importance. |
| D | Performance is less than required for a C score. |
23.4. Payroll audit |
|
| A | A strong system of annual payroll audits exists to expose control weaknesses and identify ghost workers. |
| B | A payroll audit covering all central government entities has been conducted at least once in the last three completed fiscal years (whether in stages or as one single exercise). |
| C | Partial payroll audits or staff surveys have been undertaken within the last three completed fiscal years. |
| D | Performance is less than required for a C score. |
Coverage
CG.
