PAYROLL AUDIT PROCESS

HR Department
June 2022

Name of Project Project Duration Coverage of Audit

PMFTC WS OPS MAX January 17 – May 11, 2022 Quarters 1 and 2
Audit Group Kako Usi, Beth Barrera, Beng Rivera, E-Anne Enriquez; CM
Team and Finance Department

Briefer
1. As the project comes to a close, possibly for 2022, there is a need to conduct a payroll audit to
determine full compliance and adherence to the payroll process and guidelines established for
the above project.
2. The details of coverage of this payroll audit are summarized above and will follow the audit
process described below.
3. The audit is expected to take 7 to 10 days and will be conducted primarily by the HR
Department, specifically Christine (Kako) Usi, Elizabeth Barrera and the rest of the HR team, in
cooperation with the CM Team and Finance.

Objectives
1. To assess total mandays delivered by manpower based on submitted valid documents VS. total
amount of salaries paid; thus, determining legitimate discrepancies that need to be addressed.
2. To verify all late submissions (non-compliance to project standards) and inquiries, and process
the validated ones.
3. To ensure the complete and full payment of all manpower salaries for WS OPS MAX through
the establishment of a final audited document (Masterfile) as a reference file to achieve this.

Payroll Audit Process

Persons/Departments/Documents
Process Details
needed
Step 1 Collate all documents 1. DTRs 1. HR – Kako / Online links for
processed for manpower Q2
payroll 2. DARs 2. CM Team
3. Payroll Topsheet 3. Kako (Q1)
4. Payroll Report 4. Beth & E-Anne (Q2)
5. Finance documentation 5. Rhea
Step 2 Validate Q1&Q2 DTR 1. Validate Q1 DTRs vs. DARs 1. HR – Kako, E-Anne, Beng
vs. DAR; confirmation 2. Validate Q2 DTRs vs. DARs 2. CM Team - Kelly
by CM Team 3. CM Team confirms the
validation done for Q1
4. CM Team confirms the
validation done for Q2
Step 3 Validation of Payroll 1. Validate Q1 Payroll Topsheet 1. HR – Kako, Beth, E-Anne,
Topsheet for Q1 and Q2 vs. Payroll Report Beng
vs. Payroll Report to 2. Validate Q2 payroll topsheet
identify discrepancies vs. payroll report
and establish a payroll
 Persons/Departments/Documents
Process Details
needed
masterfile
Step 4 Validation of Q1 and Q2 1. Validate Q1 payroll report vs. 1. HR – Beth, Beng, E-Anne
Payroll Report vs. finance report
Finance Report 2. Validate Q2 payroll report vs.
finance report
Step 5 Compile a report of 1. Create a masterfile of 1. HR – Beth, Beng, E-Anne
government deductions manpower government
for Q1 and Q2 deductions – indicating
released/paid out
Step 6 Compile a working file 1. Compile all inquiries 1. HR – Beng and E-Anne
of all manpower payroll regarding payroll
inquiries and late 2. Compile all late submission of
submissions DTRs
Step 7 Determine legitimate 1. Review the list of inquiries vs. 1. HR – Kako, Beth, Beng and E-
concerns by analysing list of discrepancies and Anne
the list of discrepancies payroll Masterfile
vs. payroll inquiries and 2. Review the list of late
late submissions submission of DTRs vs. list of
discrepancies and payroll
Masterfile
Step 9 Establish final audited 1. Establish the (audited) payroll 1. HR – Kako, Beth, Beng & E-
files masterfile Anne
2. Establish the (audited)
government benefits masterfile
3. Create the final payroll file
composed of the computation
of all processed payroll and
remaining unprocessed and
released

Payroll Claims Resolution

1. To resolve the payroll claims of (a) late submissions and (b) salary discrepancies; the above
Masterfile documents will be used to process the following:
a. Computation of all remaining unpaid salaries
b. Preparation of all government benefits payment documents
2. Full payment of the following:
a. All salaries computed in 1.a.
b. All government benefits computed in 1.b.

Additional Claims and Grievances

1. Claims for unpaid transportation allowance must likewise be addressed through a similar
process of validation to determine unpaid amounts due and settlement of these.
2. In the latest SeNA filed by a Batangas group, they are also claiming for 13th month pay. This will
be determined and computed during the exit process as we conclude this project for the current
manpower.