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5). Payroll Charges
General Description:
MIT currently processes two types of payroll transactions -- a staff
payroll and a weekly payroll. The staff payroll (paid monthly), includes
faculty, other academic staff, sponsored research staff, administrative
staff, and graduate student research assistants and teaching assistants.
The weekly payroll includes support staff, service staff, MIT student
employees, and voucher employees.
SAP Document Types:
SM (Staff Payroll), SW (weekly payroll), and some SA
(journal vouchers)
Central MIT Controls:
Strong system of required approvals for hiring and changes to compensation.
Feed from payroll system to SAP is electronic, with any charges posting
to suspense researched and cleared.
Level of Risk: Low.
Controls over authorizing additions or changes to MIT's staff and their
compensation are strong.
Documentation to Retain:
- Time cards for hourly personnel, signed by the employee and an individual
with direct knowledge of the work performed (for as long as the employee
might want to check or challenge payment, at most the current FY and
an additional FY).
- Signed DACCAs, the payroll form which requires certification of
effort on sponsored cost objects and other MIT activity by an individual
with direct knowledge of the work performed. (Retain for current FY
plus four additional FYs).
DLC Tasks:
Ongoing:
- Review time cards for hourly personnel, which must be signed by
the employee and someone having direct knowledge of the work performed.
- Review DINDI (lists current month support staff, service staff,
and student payroll activity) and communicate any required changes
to Payroll via hard copy turnaround document. See note below on timing.
- Review SANDI (lists current month postings for staff members),
and communicate any changes to Payroll via ESANDI (an electronic version
of the SANDI) or SANDI hard copy turnaround document. See note below
about timing.
- Review DACCA (lists all payroll activity for month), which
must be signed by a designated individual who has direct knowledge
of the work performed; communicate any changes to Payroll via hard
copy turnaround document. See note below on timing.
Note: Retroactive changes to salary, especially on research grants,
must be properly documented, with an explanation why this change
is being made. There are time limits on after-the-fact salary transfers;
thus, a timely review is important.
Statement-related:
- Review SM and SW transactions via the DINDI, SANDI, and DACCA processes
(described under "Ongoing" DLC Tasks).
- At month end, review any other document types related to payroll,
but not processed through the payroll system (SA or journal voucher
transactions, usually), to ensure they are accurate. A Data Warehouse
report, "Payroll Exception", has been developed to identify any non-SW
or SM transactions to a payroll GL account.
- Additionally, check to see that any changes requested in the prior
month have been made.
Contact for questions:
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