Please enable JavaScript.
Coggle requires JavaScript to display documents.
Timekeeping Function : Payroll - Coggle Diagram
Timekeeping Function : Payroll
Flow of Documentation
Blank clock cards;
Hours recorded on clock;
Batch control sheet and batch register
Risks within this Function
Fellow employees can clock in for an absent employee, therefore resulting in recording of invalid hours;( Clock in for each other)
Clock cards could be made out and clocked for a fictitious/ghost employee, thereby facilitating the payment of wages to fictitious/ghost employees;( Ghost employees).
Errors could be made by the payroll department in calculating and collating information on the clock card for recording, e.g. hours worked and rates used etc. (Errors in calculations)
Controls to mitigate risk
Clock cards should be
:
Numerically accounted for (sequence check); 1,2,3,4,5........
Issued by the personnel department and prepared from personnel records/master file;
Stored at clock machine, under supervision, not with the employees).
Entry and exit point to the work area should:
Be limited to one access point;
Protected by a “turnstyle” type mechanism;
Be supervised during clocking periods.
Controls Cont.
Clock procedures
:
The clocking machine should be situated at the entrance/exit to ensure that personnel may not leave premises without clocking in/out;
Supervision over the clocking of employees (prevent employees from clocking in for absentees).
The foreman should:
Keep a record of personnel present and time worked;
Sign clock cards as evidence of approval of hours worked by the employee.
The foreman’s clock card should be approved by a senior official (e.g. factory manager).
Overtime should
:
Be authorised according to the company policy by the factory manager or foreman.
The foreman’s overtime is authorised by the factory manager.