The first payroll cycle of the new instructional year is an ideal time for a comprehensive payroll reconciliation. Combine an inherently complex process with multiple new hires in addition to changes to exempt and nonexempt employee pay rates; leave policies; and employees’ roles and responsibilities tied to stipends; and it’s readily apparent that there are layers of opportunities for payroll and benefit issues with the first payroll run of the new instructional year. An adequate payroll reconciliation process is even more important if one or more processes are supported by spread sheets maintained outside of the payroll software system and is absolutely more essential if the district lacks a functioning position control system.
To adequately vouch the accuracy of the preliminary payroll run, the payroll reconciliation process needs to involve a comparison of summary dollar amounts derived from information organized from sources external to the payroll calculation system to summary dollar amounts generated by the payroll calculation system.
Key personnel related events to organize for the payroll reconciliation include:
- Date modified
- Employee #
- Last name
- First name
- Location
- Position
- Old salary
- New salary
- Salary increase-decrease
- New stipend-related roles and responsibilities
- Old stipend
- New stipend
- Stipend increase-decrease
- Old allowance
- New allowance
- Allowance increase-decrease
- Effective date
- Supervisor
- Original hire date
- Employee classification (classified/non-classified)
- Contract (yes/not)
- Date recommended
- Reason for change(s)
- Remarks
- Board approval required (yes/no)
- Board meeting date
An adequate payroll reconciliation process will help the payroll department assess whether the first payroll of the new instructional year appears accurate in comparison to the last payroll of the prior fiscal year in addition the last payroll after the prior 180-day instructional year.
To help streamline the payroll reconciliation process, some school districts are using workplace collaboration tools to organize information about all personnel-related events so that all of the key data and supporting information are accessible in a single spreadsheet, form or report. A workplace collaboration tool will convert a seemingly impossible reconciliation process in a larger-enrollment school district to an effective and functional internal control.