Question:  Due to change in staff in the last few years our Business Department and Human Resource Department are having discussions to itemize and confirm who should be completing certain tasks. We are addressing these issues to ensure that there is a segregation of duties and a checks and balance across the departments. The task that is causing concern is the assigning of a position tracking number. Who should be completing this task? Currently, HR enters all of the personnel information of employees, requests for new positions are created in HR and funds are verified by Business. Who should then create the position and enter the tracking number into the software system? We realize that Payroll verifies that the position will be paid accurately.

Response:  Employee salaries and benefits are the largest part of any school district budget, and projecting them accurately is the most important element in any financial projection. A reliable position control system establishes positions by site or department and prevents overstaffing by ensuring that staffing levels conform to district formulas and standards. The proper separation of duties also helps to ensure a reliable and accountable position control system and is a key factor in strong internal controls.

Because personnel and payroll departments work so closely together in many areas, especially position control, it is important that communication is open and shared. Many districts establish monthly meetings between the two departments to resolve any issues and develop new policies and procedures. Since it appears that there are already discussions about processes and procedures, monthly meetings could be very valuable for both departments as modifications develop and are implemented.

Position control responsibilities are usually shared by the business and personnel departments to provide good internal controls. Internal controls help ensure efficient operations, reliable financial information, and legal compliance. They also protect the district from material weaknesses, and serious errors and fraud. Regardless of the type of position control system used, these controls should be in place.

The following table provides a sample distribution of labor between business and personnel departments containing the necessary internal control structure. Basically, there should be effective checks and balances between personnel decisions and budgeted appropriations.

Basically, once the governing board approves a position, the business department should input the position into position control, including its specific tracking/position number. Once the position is filled, personnel should assign actual employee data to that approved position. One employee should not be allowed to input a new position into the position control system and add specific employee data.

New positions should be initiated using some type of a Personnel Requisition. The form should identify all pertinent information regarding funding, location and category to which it will be charged. The form should be prepared by the site, program or department requesting the position.

All transactions generated via the Personnel Requisition should be processed through the business office first to ensure the availability of a position and adequate funding. If neither exist, further action is required. In addition, the business office should be responsible for verifying the completeness and accuracy of the Personnel Requisition, as account coding is a budget function as well.

9/18/07