ACL ESSENTIALS. Get insight into your ERP process health, compliance & financial exposure SALARIES & PAYROLL

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1 ACL ESSENTIALS Get insight into your ERP process health, compliance & financial exposure SALARIES & PAYROLL

2 Page Analytic Name Employee names on the payroll that match a vendor PR Analytic 01 Ex-employees paid more than 60 days after termination date PR Analytic 02 Payroll payments made to inactive employees PR Analytic 03 Payroll payments to employees before their start date PR Analytic 04 Analysis of new hires PR Analytic 05 Multiple annual bonus payments in one year PR Analytic 06 Payroll adjustments made after the payroll cut off date PR Analytic 07 Payroll payments where the bank accounts are the same PR Analytic 08 Payroll payments where Social Security Numbers (SSN) are the same PR Analytic 09 Excessive overtime hours worked PR Analytic 10 Multiple payroll payments to the same bank account within 30 days PR Analytic 11 Version /08

3 ACCOUNTS PAYABLE Identifies employee names on the payroll that match a vendor on the vendor master file ACL ESSENTIALS SALARIES & PAYROLL PAGE 3

4 Context Instances where the employee and vendor names agree should be investigated as these could possibly indicate fraudulent transactions and/or incorrect employee/payroll master data. Risk Possible fictitious/incorrect employees created, resulting in fraudulent/incorrect payroll payments. Procedure Identifies employee names on the payroll that match a vendor on the vendor master file. Note: Reimbursed employee vendors could appear in the results as false positives. Analytic Logic Extracts for the selected month s payroll data and compares the first and last names to the names of vendors on the master file. Output Results Field Names Employee Number ID Number First Name Last Name Vendor Name Vendor Number Pay Date Net Payment Output Visualization Examples Total exceptions by vendor Total exceptions by employee number and vendor ACL ESSENTIALS SALARIES & PAYROLL PR_ANALYTIC_01_PRCS101 PAGE 4

5 Identifies where ex-employees were paid more than 60 days after termination date ACL ESSENTIALS SALARIES & PAYROLL PAGE 5

6 Context Salary payments typically end promptly after the employee termination date. Any payments made to an ex-employee after the termination date could indicate incorrect and/or fraudulent payments, and should be investigated. Risk Incorrect and/or fraudulent payroll payments. Procedure Identifies where ex-employees were paid more than 60 days after their termination date. Analytic Logic Extracts for the selected month s payroll data and HR master data, analysing for transactions in payroll occurring greater than 60 days after the termination date of the ex-employee found in the HR master data. Output Results Fields Personnel Area Code Personnel Area First Name Last Name Employee Status Employee Number Pay Date Start Date Termination Date Net Payment Output Visualization Examples Termination date by net Payment Net amount by termination date ACL ESSENTIALS SALARIES & PAYROLL PR_ANALYTIC_02_PRCS102 PAGE 6

7 Payroll payments made to inactive employees ACL ESSENTIALS SALARIES & PAYROLL PAGE 7

8 Risk Incorrect and/or fraudulent payroll payments. Context Payments to inactive employees should be investigated to determine the validity of the payment. Procedure Identifies payroll payments made to inactive employees. Analytic Logic Extracts for the selected month s payroll data and HR master data, analysing for transactions in payroll occurring where the employee record in the HR master data indicates the employee is inactive. Output Results Field Names Personnel Area Code Personnel Area First Name Last Name Employee Status Start Date Termination Date Net Payment Pay Date Output Visualization Examples Exceptions by Employee Status and Personnel Area Pie chart of exceptions by Employee Number ACL ESSENTIALS SALARIES & PAYROLL PR_ANALYTIC_03_PRCS103 PAGE 8

9 Identifies payroll payments to employees before their start date ACL ESSENTIALS SALARIES & PAYROLL PAGE 9

10 Context It is not expected that any employee benefits from a payroll transaction prior to their employment commencement date. Identified instances should be investigated to determine the reason for the payment as well as verifying the review and approval of the payment. Risk Incorrect and/or fraudulent payroll payments, namely paying an employee prior to them commencing employment. Procedure Identifies payroll payments to employees before their start date. Analytic Logic Extracts the start dates of new hires and compares to the current payroll date in the current month payroll file. Output Results Field Names Personnel Area Code Personnel Area First Name Last Name Employee Status Start Date Pay Date Net Payment Output Visualization Examples Net payment by start date Heat map of total net payment exceptions ACL ESSENTIALS SALARIES & PAYROLL PR_ANALYTIC_04_PRCS104 PAGE 10

11 Extracts new hires whose start date is after the payroll pay date ACL ESSENTIALS SALARIES & PAYROLL PAGE 11

12 Context The accuracy of critical employment information captured for new hires, such as employment start date, should be verified to ensure new hires are paid in a timely manner. This will also allow an organisation to identify potential ghost employees entered into the system. Risk Late/untimely payroll payments. Procedure Identifies new hires who are employed in a particular payroll month that have been paid in that same month. Analytic Logic Extracts new hires from the current month payroll and if their start date in the HR data is after the payroll date, this is flagged as a new hire. Output Results Field Names Personnel Area Code Personnel Area First Name Last Name Employee Status Start Date Pay Date Net Payment Output Visualization Examples Bubble chart of net payment exceptions Net payment by start date by Personnel area ACL ESSENTIALS SALARIES & PAYROLL PR_ANALYTIC_05_PRCS105 PAGE 12

13 Identifies annual bonus payments made more than once to an employee up to one year back ACL ESSENTIALS SALARIES & PAYROLL PAGE 13

14 Context Annual bonus means once a year. When multiple bonus payments are made to the same employee it raises a concern regarding the accuracy and validity of these bonus payments and should be investigated. Risk Incorrect and/or fraudulent payroll payments. Procedure Identifies annual bonus payments made more than once to an employee up to one year back. Note: During scoping, annual bonuses are specifically identified to ensure incentives or other non-annual bonuses are not treated as annual for this analytic. Analytic Logic Extracts a rolling twelve month annual bonus payments table and identifies those that were paid more than once in this period. Output Results Field Names Employee Number First Name Last Name Pay Date Bonus Amount Bonus Description ID Number Output Visualization Examples Bonus amount by pay date and bonus type Bonus amount by employee number ACL ESSENTIALS SALARIES & PAYROLL PR_ANALYTIC_06_PRCS106 PAGE 14

15 Identifies payroll adjustments made after the payroll cut off date ACL ESSENTIALS SALARIES & PAYROLL PAGE 15

16 Risk Incorrect and/or unauthorised payroll adjustments. Context Payroll adjustments after cut-off date should be investigated to confirm accuracy and validity of these changes. Procedure Identifies payroll adjustments made after the payroll cut off date. Analytic Logic Extracts changes made after payroll cut off to show users what changes have been made. These can be further investigated by payroll or audit to understand the nature of such late changes. Variables The payroll cut off date is determined during scoping in Quick. Output Results Field Names Employee Number TR Class ITYPE Change Date User ID User Name Employee Status Termination Date Number of Changes Output Visualization Examples Number of changes by date changed Employee Number by number of changes ACL ESSENTIALS SALARIES & PAYROLL PR_ANALYTIC_07_PRCS107 PAGE 16

17 Identifies payroll payments where the bank accounts are the same ACL ESSENTIALS SALARIES & PAYROLL PAGE 17

18 Context Payments to similar bank accounts should be investigated to ensure the accuracy and validity of these payments. Risk Incorrect and/or fraudulent payroll payments. Procedure Identifies payroll payments where the bank accounts are the same. Note: Married couples with joint bank accounts are false positive exceptions. Analytic Logic Extracts the combined fields of bank account number and bank branch code to which payroll payments have been made for the same employee and performs a duplicate check. Output Results Field Names Personnel Area Code Personnel Area Employee Status Employee Number First Name Last Name Bank Account Number ID Number Start Date Termination Date Pay Date Net Payment Output Visualization Examples Pie chart of net payment by bank account numbers Heat map of total net payment exceptions by bank account number and employee ACL ESSENTIALS SALARIES & PAYROLL PR_ANALYTIC_08_PRCS108 PAGE 18

19 Identifies payroll payments where employee national identification numbers are the same ACL ESSENTIALS SALARIES & PAYROLL PAGE 19

20 Context Duplicate social security numbers could be because of incorrect employee master data or because of fictitiously created employees. These instances should be investigated. Risk Possible fictitious/incorrect employees created, resulting in fraudulent/incorrect payroll payments. Procedure Identifies payroll payments where employee social security numbers are the same. Analytic Logic Extracts all duplicates on the social security number field in the selected month s payroll. Output Results Field Names Personnel Area Code Personnel Area Employee Status Employee Number First Name Last Name ID Number Termination Date Pay Date Net Payment Output Visualization Examples Total net payment exceptions by employee number Total net payment exceptions by employee number ACL ESSENTIALS SALARIES & PAYROLL PR_ANALYTIC_09_PRCS109 PAGE 20

21 Identifies where overtime hours worked exceeds a configurable threshold ACL ESSENTIALS SALARIES & PAYROLL PAGE 21

22 Context Overtime claims should be properly reviewed and approved to confirm accuracy and validity. Overtime payments exceeding the norm/expected levels should be investigated to ensure it is valid and accurate. Risk Incorrect and/or fraudulent payroll payments. Procedure Identifies where overtime hours worked exceeds a configurable threshold. Note: If local legislation prescribes a maximum number of hours employees can work in a month, this analytic can assist with complying to these requirements. Analytic Logic Extracts overtime hours in excess of a configurable threshold for further analysis. Output Results Field Names Employee Number First Name Last Name ID Number Total Overtime Overtime 1 Quantity Overtime 1.5 Quantity Overtime 2 Quantity Net Payment Output Visualization Examples Total Overtime by employee number Total overtime by employee number Total net payment by overtime and employee ACL ESSENTIALS SALARIES & PAYROLL PR_ANALYTIC_10_PRCS110 PAGE 22

23 Identifies multiple payroll payments to the same bank account within 30 days ACL ESSENTIALS SALARIES & PAYROLL PAGE 23

24 Context Multiple payments within a specific period raises a concern as payroll payments typically are executed once a month. These payments may be incorrect and/or fraudulent and should be investigated. Risk Incorrect and/or fraudulent payroll payments. Procedure Identifies multiple payroll payments to the same bank account within 30 days. Analytic Logic Extracts payments in the last 30 days and identifies where more than one payment was made to the same bank account. Based on the assumption that an employee gets paid once a month, exceptions for this analytic present a potential issue for further investigation. Output Results Field Names Personnel Area Code Personnel Area Employee Status Employee Number First Name Last Name Pay Date Bank Account Number Net Payment Total Deductions Total Earnings Hashed Identification Number Start Date Termination Date Output Visualization Examples Exceptions by bank account number and employee number Total net payment exceptions by bank account number ACL ESSENTIALS SALARIES & PAYROLL PR_ANALYTIC_11_PRCS111 PAGE 24