Management Information Sheet

From May to July 2023, Norfolk Audit Services carried out a thematic audit on the payroll processes within maintained schools. A sample of ten maintained schools were audited.

The following risks were covered as part of this audit: -

• Staff no longer employed at the School may still be paid.
• Ghost employees may be set up and paid.
• Inaccurate or incorrect payments to staff may occur which may not be detected and corrected.
• Unauthorised or fraudulent claims may be made and paid to staff.
• Late payments for e.g., expenses or additional hours, may occur due to the late submission or processing of claim forms.

Overall Summary

The following points are an overall summary of the areas where controls were found to be operating at most schools: -

• Most schools were reviewing the monthly download and acting as necessary.
• At most schools, staff members were completing all types of claim forms fully and in a timely manner.
• At most schools, all types of claim forms were being appropriately authorised.

The following findings are an overall summary of the areas that need strengthening, and are not representative of every School visited:

• Written approval, by appropriate senior management for example, the Headteacher, to add new staff or remove staff from the School's payroll or to make changes to payroll data was not given prior to the necessary tasks being undertaken on Workspace.
• New starters, leavers and changes to payroll data were not always processed on WorkSpace in a timely manner, resulting in overpayments to staff on some occasions.
• Overtime and additional hours completed by staff were not approved by the Headteacher prior to these hours being worked.
• Schools are not always able to evidence the checks they completed when reviewing the termly Staff Payroll Data Master List reports. Additionally, one school was not completing thorough checks on the monthly download reports.
• On occasions, members of staff are submitting incomplete additional hours, expenses and casual work claim forms.
• On occasions, members of staff are not always submitting additional hours, supply, expenses and casual work claim forms in a timely manner, within the expected three-month period of the hours worked.
• Headteachers' expenses claim forms are sometimes being inappropriately authorised by members of staff who are not in a position of seniority to the Headteacher.

Detailed Findings

1. Approval of new starters, leavers, and changes to payroll data

   At eight of the ten schools visited, we found the Headteacher had not provided written approval for processing payroll data for new starters, leavers and changes to payroll data.

   Recommendation

   Written authorisation should be provided to the appropriate person by the Headteacher or senior staff for all staff additions or removals or changes to payroll data. This could be achieved by using a purposely designed form for new starters, leavers and changes, which once authorised, is held on record to support the addition, removal or change made. Alternatively, the Headteacher could document their authorisation on the WorkSpace request forms.

2. Late entry of data on WorkSpace for new starters, leavers, and changes to payroll data

At five of the ten schools visited, the necessary information for the new starters, leavers or changes to payroll data was not entered on WorkSpace in a timely manner prior to the effective date. In most cases, this was in relation to one or two staff members at each school. This resulted in overpayments to staff members in some cases which had to be recovered.

Recommendation

Schools should ensure that the necessary details for new starters, leavers and changes to payroll details are entered on WorkSpace in a timely manner, prior to the effective date.

3. Approval of overtime and additional hours claims

At nine of the ten schools visited, overtime and additional hours were not approved by the Headteacher prior to these hours being worked. Approval to work the hours was given verbally.

Recommendation

Written authorisation should be provided by the Headteacher for any overtime and additional hours to be worked prior to these hours taking place. This could be achieved by using a purposely designed form for overtime requests, which once authorised by the Headteacher, is held on record.

4. Monthly download (includes payroll data) and termly Staff Payroll Data Master List reviews

At five of the ten schools visited, sufficient evidence to demonstrate that adequate checks were being completed when the termly Staff Payroll Data Master List were reviewed, to identify anomalies and incorrect details was not being recorded or retained. This was also the case for the review of the monthly download at one of the ten schools.

Recommendation

An audit trail should be kept by the Headteacher and the person completing the monthly and termly payroll checks. A purposely designed form that records the checks completed by both parties and when, the issues found, and the action taken, signed by both parties, could be used.

5. Details submitted on additional hours, supply and casual worker claim forms

At five of the ten schools visited, several claim forms had been submitted to payroll which were not fully completed. Details omitted included payroll reference numbers, subjective code and the signature and date from the member of staff submitting the claim form.

Recommendation

To improve the efficiency of processing, all claim forms should be submitted to payroll as accurately and fully as possible, to reduce the risk of a late payment occurring or forms being returned. Staff should be reminded to complete these forms fully.

Authorisers of these forms should ensure that claim forms have been fully completed before approving the hours worked, returning any that have missing data to the employee for them to complete.

6. Late submissions of overtime, expenses and supply claim forms by staff

At three of the ten schools visited, we found that staff were not submitting their claim forms in a timely manner, within the expected three-month period.

Recommendation

Staff should ensure that they complete and submit claim forms for any supply, overtime, expenses or additional hours worked by the end of the calendar month in which the work was completed to ensure timely payment is made for the time worked.

7. Approval of expenses claims

At two of the ten schools visited, we found the Headteacher's expenses claim forms were being inappropriately authorised by a member of staff who was not in a senior position to the Headteacher.

Recommendation

All expenses claim forms for Headteachers at schools should be authorised by the Chair of Governors.

8. Incorrect payroll details entered on WorkSpace

At one of the ten schools visited, we found new starter payroll details had been incorrectly entered by the person completing these tasks on WorkSpace, resulting in two members of staff receiving incorrect pay.

Recommendation

Schools should ensure that new starter information is set up correctly on WorkSpace; particular attention should be given to ensuring that the working hours are entered correctly as this information feeds into the staff member's contract and pay amount.

Actions

We recommend the above issues are considered by your School's Leadership Team, together with any proposed actions for improvements you need to make in relation to your School. Any issues and proposed actions should be presented to the relevant Governing Body Committee for approval and monitoring.

A reminder that, as part of their autumn term visits to all schools and the link to the RAG matrix, Finance Support Officers will ask for evidence, in the form of Governors' minutes highlighting where discussions have taken place regarding the findings and recommendations from these audits.

If you wish to acknowledge coverage of recommendations before these meetings, then please send details to finance.support@norfolk.gov.uk