Agenda 04/09/2013 Item #16D8 4/9/2013 16.D.8.
EXECUTIVE SUMMARY
Recommendation to accept the staff report regarding actions taken to enhance Payroll Time
Controls within the Parks and Recreation Department.
Objective: To provide a report of actions taken by the Parks and Recreation Department and Human
Resources Department as related to the payroll theft associated with the Immokalee Sports Complex.
Considerations: On February 26, 2013, the Board of County Commissioners received a presentation
from the Clerk of Courts pursuant to the release of Audit Report 2012-7. The referenced audit was
released nearly eleven months after staff learned that individuals working at the Immokalee Sports Center
were engaging in payroll theft.
The following is a report from staff regarding actions taken to address the theft issue and subsequent
findings in the audit.
Parks and Recreation Actions:
On April 4, 2012, The Department learned of a potential theft that occurred with payroll associated with
the Immokalee Sports Complex. Within 24 hours, personnel associated with the theft were interviewed,
terminated based upon their report of the incidents, and the matter turned over to the Collier County
Sheriff's Office for prosecution.
The Department immediately reviewed protocols associated with the time keeping payroll process and
strengthened internal controls to prevent the collusion that occurred resulting in the loss. To summarize,
the department took the following actions:
Action(s) Date
Developing of full segregation of duties
associated with collecting, entering and May 2012
approving payroll time and distribution of
paychecks/stubs each pay period.
Providing initial re-training to all timekeeping May 2012
staff.
Initiated a department wide post payroll audit
of all time entries for each pay period. June 2012
Terminated and disciplined supervisory staff
involved in the incident. April 2012
Provided additional training of timekeeping
protocols, standardizing the timesheet used by
the department. January 2013
To elaborate,the department established a centralized,ongoing post-audit of payroll records for each
payroll period to ensure standardization of time entry. This centralized post-audit includes:
1. Posting and maintaining schedules for all cost centers in the department electronically
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2. Checking time cards to ensure schedules support time entry
3. Reconciling time cards to what has been entered into SAP
4. Checking all entries for completeness (e.g.; appropriate signatures, inclusion of leave slips, proper
coding, etc.)
5. Contacting the Program Supervisor and Regional Manager immediately if any discrepancy is
uncovered.
6. Correcting all other errors on the spot, or the next payroll period.
7. Keeping a log that details the audit and is filed for each pay period.
Exhibit A is an example of the monitoring form used for each payroll. All records associated with the
payroll are now centralized and kept at the department's administration office for proper record retention.
The Human Resources Department has implemented a real-time payroll system starting with future
payroll periods. This system will allow the Parks and Recreation staff to conduct payroll pre-audits to
ensure further accuracy.
Human Resources Actions:
Effective June 1, 2012, all newly hired and rehired employees have been required, as a condition of
employment, to have their wages direct deposited to the financial institution they designate.
Additionally, beginning in February 2013, the Board agency began the process of moving the date on
which employees receive their check. The payroll period has remained the same, but over a total of five
payroll periods, the check date has been moved one day. On April 5, 2013, this move will end, and
employees will receive pay two weeks following the close of the payroll period. This change provides
additional accountability to departments, and for the pay period to end prior to time records being
submitted.
A CMA for Time Recording is being developed and will be implemented within the next month
throughout the agency that clearly outlines responsibilities by every employee.
Modifications to the timekeeping system are being evaluated. Options include:
• Standardized time card for non-exempt/hourly employee time recording
• Digital time clocks
• Updates to SAP time schema with agency time rules "behind the scenes" so upon input of hours
worked, rules will determine overtime compensation or compensatory time earned.
• Centralize SAP timekeeping processes; eliminate many existing department timekeepers who
have this as a portion of their job duties and replace with SMEs (subject matter experts) whose
sole responsibility it is to process and audit time entries.
• Implement electronic time clocks integrated to SAP
• Implement Employee Self Service and Manager Self Service through SAP
Le2a1 Consideration: This item has been reviewed by the County Attorney and raises no legal issues.
Acceptance of the report would be by majority action by the Board. -JAK
Fiscal Impact: The Parks and Recreation Department will review the errors identified in the audit and
make necessary corrections to payroll of the individuals identified. Costs for implementing agency wide
modifications to the current timekeeping system range from staff time to train and re-educate employees
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for the lowest-level solution, to approximately $750,000.00 to implement Employee Self Service and
Manager Self Service through SAP
Growth Management :There is no growth management impact associated with this item.
Recommendation: That the Board of County Commissioner accept the staff report regarding actions
taken to enhance payroll time controls within the Parks and Recreation Department. .
Submitted by: Barry Williams,Director,Parks and Recreation
Attachments: Exhibit A
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4/9/2013 16.D.8.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.D.16.D.8.
Item Summary: Recommendation to accept the staff report regarding actions taken to
enhance Payroll Time Controls within the Parks and Recreation Department.
Meeting Date: 4/9/2013
Prepared By
Name: BetancurNatali
Title: Operations Analys,Parks&Rec-NCRP Admin
3/19/2013 5:04:27 PM
Submitted by
Title: Director-Parks&Recreation,Parks&Recreation
Name: WilliamsBarry
3/19/2013 5:04:29 PM
Approved By
Name: AlonsoHailey
Title: Operations Analyst,Public Service Division
Date: 3/20/2013 10:03:44 AM
Name: WilliamsBarry
Title: Director-Parks&Recreation,Parks&Recreation
Date: 3/20/2013 12:04:29 PM
Name: CarnellSteve
Title: Director-Purchasing/General Services,Purchasing
Date: 3/20/2013 12:11:09 PM
Name: GreenwaldRandy
Title: Management/Budget Analyst,Office of Management&B
Date: 3/20/2013 4:00:49 PM
Name: KlatzkowJeff
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4/9/2013 16.D.8.
Title: County Attorney
Date: 3/28/2013 11:07:00 AM
Name: FinnEd
Title: Senior Budget Analyst, OMB
Date: 4/1/2013 5:19:56 PM
Name: KlatzkowJeff
Title: County Attorney
Date: 4/2/2013 4:42:10 PM
Name: OchsLeo
Title: County Manager
Date: 4/3/2013 9:21:17 AM
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