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Audit Objective

Determine whether Lyons Central School District (District) officials ensured the District accurately paid employees’ salaries and wages.

Key Findings

District officials did not ensure employees’ salaries and wages were always paid accurately. As a result:

• Two employees were paid rates inconsistent with Board authorized rates or collective bargaining agreements (CBAs), resulting in one employee receiving additional compensation of $4,940 and one employee being underpaid $731.
• Leave time was not always accrued in accordance with employment contract (contract) or CBA provisions, which resulted in one employee accruing two additional sick days and one employee not being credited 9.5 hours of compensatory time.
• The payroll supervisor was responsible for all aspects of processing payroll including affixing the Treasurer’s signature to checks with limited oversight.

Key Recommendations

• Ensure that employees are paid in accordance with approved salaries and/or applicable CBAs and that leave time is accrued in accordance with contracts and CBAs.
• Segregate payroll duties or implement adequate compensating controls, and ensure the Treasurer maintains control of their signature.

District officials generally agreed with our recommendations and indicated they would take corrective action.