Review Agenda Item
Meeting Date: 1/11/2018 - 7:00 PM
Category: Old Business and Action Items
Type: Info
Subject: Payroll Audit Update
ACPS 2025 Strategic Plan Goal:
Objective 6.1 Fiscal Policies and Practices
ACPS will plan, manage, monitor, and report spending to provide decision-makers and the community with a reliable, accurate, and complete view of the financial performance of the educational system at all levels.
Objective 6.2 Continuous Improvement
ACPS will engage in cycles of continuous improvement at every level of the school division, and it will employ evidence-based decision-making in its consideration of process improvements, policy making, and budgeting and accountability.
Objective 6.3 Operational Efficiency and Performance Management
ACPS will focus resources on student learning by utilizing a comprehensive performance management system that ensures efficient, cost-effective business operations.
Policy: DA - Management of Funds
Funding Source or Fiscal Impact (where applicable)
File Attachment:
Agenda Item Summary: As part of the functional audit, Gibson offered 11 payroll process recommendations. In the three months since the audit concluded:
• 4 (36.4%) recommendations have already been fully implemented on schedule.
• 7 (63.6%) recommendations remain on track to be completed on the original timeline.

All of the Payroll Process audit recommendations and their statuses are detailed within the attached presentation.

This report on the Payroll Process audit is the second in a series of performance audit staff updates. The Procurement Process audit update was already presented to the Board on December 14, 2017. The Facilities Process audit will be presented on January 25, 2018. Then, staff will continue to present the School Board quarterly updates on each audit until all recommendations have been implemented.
Background: After an outside consultant completed a Risk Assessment of ACPS, the School Board approved funding in the FY 2016 Combined-Funds Budget for an internal audit program. In the spring of 2016, the School Board awarded a contract to Gibson Consulting Group to conduct audits in the following areas: Procurement, Facilities, and Payroll.

The Payroll audit began in May 2017 and was substantially completed in September 2017. The Final Audit Report, including management responses was completed in October 2017. On November 9, 2017, Gibson Consulting Group presented the School Board with the audit results for all three functional audits.

Additionally, in September 2016, ACPS convened a working group of Financial Services, Human Resources and Technology Services leadership staff to streamline division-wide payroll processes and systems. This working group has identified and started to address many of the same subjects subsequently discussed in the Gibson Performance Audit. This working group will be primarily responsible for continued implementation of payroll process and systems improvements including those identified in the Gibson Performance Audit.
Recommendation: The Superintendent recommends that the School Board reviews the Payroll Process Audit Report and the progress made on the audit recommendations.
Recommended By:
Signed By:
Mike Herbstman - Chief Financial Officer
Signed By:
Lois Berlin -