A recent audit of the town of Smithfield, North Carolina, determined that a multitude of its practices increased the likelihood of payroll fraud, according to The Johnson County Herald.
The auditors' findings echoed the results of a recent internal probe that revealed numerous violations of the town's time and attendance policies. Specifically, some employees were allowed to trade vacation time for cash or convert sick leave to vacation leave, which affected how much those who quit or got fired were paid out at the end of their employment. Some were also permitted to accrue thousands of hours of leave, the news source reports.
Additionally, auditors recommended that rather than allowing the technician to edit pay rates and manually adjust accumulated vacation hours, a human resources director should take over these duties.
Establishing a system of checks and balances provides safeguards to ensure that the
payroll process is not abused, in addition to reducing the potential for fund misappropriation to occur.
All data and information provided on this news blog is for informational purposes only. Infinisource makes no representations as to accuracy, completeness, suitability, or validity of any information on this site and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. All information is provided on an as-is basis. Information regarding employment suits and other legal action is not updated after publication, and may not be current.
Related Headlines