Segregation of Duties

Purpose:To provide internal controls intended to prevent, or decrease the risk of, errors or irregularities; identify problems; and ensure that corrective action is taken. This is done by assuring that no single individual should have control over all phases of a transaction. 

  1. Each department is responsible for designating different personnel to perform the following Payroll functions; Time Approver, Time Coordinator, reviewing and reconciling of payroll expenditures, creating payment and adjustment requests. If your department lacks sufficient personnel to segregate the responsibilities outlined here, send a memo detailing your proposal of alternative controls to Payroll. Proposals for alternative controls will be approved by the Financial Services Office-Payroll Manager on a case-by-case basis. NOTE: If you need assistance proposing alternative segregation of duties, contact Payroll at payroll [at] fso [dot] arizona [dot] edu.
  2. The Time and Labor allows employees to be assigned to Workgroups based on employment attributes including work schedules, benefits, policies and FLSA. There will be two types of time reporters; Positive and Exception Reporters
  3. Employees will receive their paycheck in one of three forms:
    1. State Warrant - Checks issued on the State of Arizona's bank account.
    2. Direct Deposit - Payment issued by employee's selection of direct deposit.
    3. Off-Cycle Check - Checks and Direct Deposits issued on the University of Arizona bank account.
  4. Each department should have a Paycheck distribution policy. For more information refer to Paychecks.
  5. Each department shall designate different individuals to perform the following payroll functions. If possible backups should be assigned for each. to request an exception to these requirements, refer to paragraph 1.
    IndividualDuties
    Time Coordinator
    1. Ensure all reported time has been approved by the appropriate Time Approver
    2. Review and allow exceptions or refer them to Time Reporter or Time Approver for corrections
    3. Ensure payable time is ready by the deadline for payroll calculation for payment on payday
    Time Approver
    1. Verify time reported and leave taken
    2. Approve time
    Paycheck Distributor
    1. Distributes paychecks - See below for limitations of who may be assigned this responsibility.
  6. All employees who work for a department must have his or her time accounted for by an individual who knows or is in a position to know if the time recorded for those persons is correct. The designated individual is usually the employee's supervisor.
  7. The Time Coordinator ensures that the time is reported correctly and is approved by both employee and supervisor to indicate agreement with the hours recorded. and that the appropriate amounts are charged to the appropriate account (i.e., the salaries and wages charged represent the proportionate share of effort that directly benefits the account or activity).
  8. Paycheck distribution can be done by several individuals, but it cannot be a supervisor or the persons directly involved in processing or approving the time and labor, unless alternate controls have been pre-approved by Payroll, see paragraph 1. This person should also distribute annual IRS Forms W-2 & 1042-S.
  9. Paychecks shall be distributed only to the employee. Paychecks should not be placed in the employee's campus mailbox or given to anyone else unless authorized per Paychecks.
  10. The Dean, Director, Department Head or his/her designee should review and reconcile the department's payroll expense transactions to assure that the wages posted to the financial accounts for the pay period are accurate.
  11. Departmental management is ultimately in charge of designating these functions appropriately.

Roles / Responsibilities

Time Coordinator - Two individuals should be assigned the task of time coordinator, one primary and one backup.

  1. Verify that all Time Reporters and Time Approvers in their area of responsibility have reported time for the current pay period
  2. Review of Reported time, Payable time and Exceptions will be completed using UAccess Employee Manager Self Service
  3. Verify all reported time has been approved by the appropriate Time Approver
  4. Review and either allow Exceptions or refer them to the Time Reporter or Time Approver for correction
  5. If a department uses leave request forms, retain any forms that are signed by the employee and the employee’s direct supervisor to support the leave hours recorded on the time sheet
  6. Time Coordinators are responsible to ensure that payable time is ready by the deadline for payroll calculation to be performed for payment on payday

Time Approver - Approves reported time. All supervisors will approve employees’ time.

  1. Review reported time
  2. Ensure TRCs are used appropriately
  3. When departmental business practice guides you to approve leave slips, submit all approved leave requests to the Time Coordinator as soon as received
  4. Approve reported time
  5. Notify the Time Coordinator of any employee who terminates when the termination occurs

Paycheck Distributor - Paycheck distribution can be done by several individuals, but it cannot be a supervisor or the persons directly involved in coordinating or approving time. The Paycheck Distributor's responsibilities are to:

  1. Verify that each employee has a paycheck by checking a list provided by the Time Coordinator
  2. If the employee receiving a paycheck is not not known to the distributor, request picture identification before giving the paycheck to the employee
  3. Distribute paychecks only to the employee. Paychecks should not be placed in the employee's campus mailbox or given to anyone else unless authorized per Paychecks.
  4. Return paychecks not distributed 30 days after the issuance date to Payroll, refer to Paychecks, for additional information.

Time Reporter - All Employees of the UA are Time Reporters regardless of Positive or Exception pay status. Time Reporters:

  1. Accurately complete and submit their time sheet each pay period by the established deadline to their Time Approver
  2. When departmental business practice guides you to prepare a leave slip, provide your Time Approver or Time Coordinator with the leave slip for any leave taken. Your Time Approver will approve and forward leave slips to the Time Coordinator.