700.6 - HR-Payroll Policy - HR-Payroll Reconciliation

Policy Area:  HR-Payroll
Policy Sub Area:  Payroll
Authority:  G.S. 143B-426.39 Powers and Duties of the State Controller
Effective Date:  7/1/2007
Last Revision Date:  12/15/2016
Policy Owner/Division:  HR-Payroll

Policy

All State entities should perform proper payroll reconciliations.

Consistent reconciliation processes are a key internal control for the payroll function and must be performed by agencies that participate in the NC HR/Payroll System, and by universities, community colleges, and agencies that operate their own payroll system. Reconciliation procedures and system controls should provide assurance that errors are properly identified, and that payroll costs and deductions are correctly calculated. This includes but is not limited to a review of error and warning indicators, preliminary payroll results, final payroll totals, and general ledger postings.

NC HR/Payroll System

During system payroll correction periods, agencies should review preliminary payroll results which are updated three times daily. A suggested process is in the Preliminary Payroll Review job aid. 
https://files.nc.gov/ncosc/documents/files/PY-10_Preliminary_Payroll_Review_Process-A_6-18-2020_A.pdf

In addition, after the NC HR/Payroll Systems results are finalized, agencies should reconcile the payroll expenses from the system to the amounts posted in the Cash Management Control System (CMCS) and North Carolina Accounting System (NCAS) or other general ledger. A suggested process is in the Payroll Financial 

Reconciliation Process job aid.

https://files.nc.gov/ncosc/documents/files/financereconsteps.pdf

Procedures

N/A

Accounting Guidance

N/A

Related Documents (Memo/Forms)

G.S. 143B-426.39 Powers and Duties of the State Controller
http://www.ncleg.net/EnactedLegislation/Statutes/HTML/BySection/Chapter_143B/GS_143B-426.39.html

NC HR/Payroll System - Preliminary Payroll Review 

https://files.nc.gov/ncosc/documents/files/PY-10_Preliminary_Payroll_Review_Process-A_6-18-2020_A.pdf

NC HR/Payroll System Financial Reconciliation Process

https://files.nc.gov/ncosc/documents/files/financereconsteps.pdf

Revision History

  • 12/15/2016 - update website links - LS