LIMITED PAYROLL SYSTEM Our testing of
the Authority's automated Human Resources/Payroll
software system indicated that extensive manual
calculations and adjustments were required, and
the system was highly dependent upon human
intervention and control. The Authority purchased
a new payroll system in FY94 for $336,000. The
Authority brought this system on-line in December
1994. It was noted during our testing that the
new system is still dependent on manual
procedures to process data. For the biweekly
payroll period ended July 15, 1996, we noted that
incentive pay and other items required 97 manual
calculations.
Manual errors in the gross pay computations of
hourly employees have occurred because
calculators and/or mental computations are used
to determine the number of hours for which
employees should be paid. Because the State
Comptroller prepares the checks, payroll check
stubs for hourly employees do not contain
sufficient information for them to recompute
gross pay. Thus, the Authority cannot rely on
hourly employees to discover errors in their
gross pay.
Recurring payroll computations for shift
incentive pay, leave without pay, uniform
cleaning, etc., were calculated and processed
manually. The system used by the Authority was
not designed to process multiple pay rate
computations needed for multiple types of
incentive pay or to process specific information
required to properly track garnishments or
individual daily attendance records.
The Toll Highway Authority employs
approximately 2,000 full or part-time employees
with an annual payroll of approximately
$74,000,000. (Finding 2, page 10)
We recommended the Toll Highway Authority
implement cost-effective enhancements to its
existing payroll system to eliminate the need for
manual payroll calculations. We also recommended
future systems be properly designed to meet the
Authority's needs or design objectives. This
finding has been repeated since 1991.
The Authority responded that it is in
agreement that fully using the automated features
of the new payroll system is to be preferred over
the use of manual calculations.
The Authority also noted in its response that
the recommendation that the payroll system be
automated as much as possible is a recommendation
the Authority has been addressing in phases. The
Authority states it has acquired the software and
is completing the implementation of the Wide Area
Network and will be proceeding with an automated
time and attendance system.
INADEQUATE SUPERVISION OF SALARIED EMPLOYEE
ATTENDANCE
We noted several weaknesses in the Authority's
controls designed to ensure that employees were
compensated only for time worked and that
employees' use of leave time was properly
recorded.
To increase accountability for employee
attendance, the Authority has designed a system
of controls. All employees are required to submit
leave request forms for vacation, personal, and
other leaves. The employee's supervisor is
required to sign the leave request form. For any
planned leave time, salaried employees are to
submit the leave request form by the first day of
the leave to the Payroll Department. Salaried
employees must also submit a daily attendance
report at the end of the pay period; this report
is due within three business days after the end
of the reporting period. The daily attendance
report is also to be signed by the employee's
supervisor. In addition, sign out sheets are
maintained for each department within the Central
Administration Building.
On December 18, 1996, we made unannounced
visits to all salaried employees located in the
Central Administration Building. We observed
employees at work, and asked to examine
identification badges which Authority employees
are required to carry. We also tested Authority
records of employee attendance and employee use
of leave time. We found numerous attendance
problems as described below.
