MC Systems, the technology member company of The Jamaica National Group, has rolled out a Payroll Audit Technology Solution, which can detect areas of fraud and abuse in a company or organisation and flag it, immediately.
Dodgry Newell, commercial manager Audit & Analytics at MC Systems, made the disclosure about the benefits of the tech solution at the MC Systems Payroll Conference, which was held on March 6, 2018,at the Jamaica Pegasus Hotel under the theme: “Payroll Decoded: Simplifying the Latest Payroll Technologies.”
Mr. Newell said the solution, called Payroll Audit Made Easy, is powered by Audit Command Language (ACL) Technology and enables the investor to improve their ability to identify, analyze and remediate anomalies associated with carrying out payroll audits.
“With this solution, the following can be achieved: a reduction in payroll costs, by identifying and eliminating errors and abuses; enhanced reputation and confidence in controls; as well as, an improvement in transparency and reliance on data,” he informed.
“The solution is also available to companies in the private sector,” said Newell, who was addressing some 400 payroll professionals and managers from across the country.
Outlining the convenience of the solution, he said that it is designed to identify payments made to individual persons after their last day of service, which may be caused by delayed processing of termination documents, or the submission of unauthorized timecards, which can be costly expenses requiring timely resolution.
According to the Association of Certified Fraud Examiners 2016 Report to the Nations, Occupational Fraud and Abuse, a typical organisation loses up to five per cent of revenues in a given year, as a result of fraud.
The report notes that asset misappropriation was by far the most common form of occupational fraud, occurring in more than 83 per cent of cases. Misappropriation of asset included: billing schemes and cheque tampering schemes, which the Report said posed the greatest risk, based on their relative frequency and median loss.
However, Mr. Newell noted that the Payroll Audit Made Easy Solution was also designed to identify anomalies such as payments to “ghost” employees.
“This solution will identify any payments made to persons who may have been “created” internally, as a means to divert funds. This is a typical payroll fraud scheme, which is discovered routinely, and amounts to a sizeable cost to an organisation, over time,” he explained.
The solution can also identify whether changes to the master file are being made outside of acceptable working hours. The employee’s record, in which the change was made, and the attributed changes are also reported.
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