Title
Payroll Verification Procedures - Pension and DROP Calculations (B)
Explanation
In accordance with our Annual Audit Plan, the City Auditor's Office completed a review entitled Payroll Verification Procedures - Pension and DROP Calculations. The primary objective of this audit was to provide reasonable assurance to the City Commission that the processes established to calculate retirees' and DROP participants' monthly pension annuity payments are operating effectively. Our procedures included interviewing key personnel within the Risk Management and Finance Departments who are involved in calculating pension and DROP payment amounts, reviewing City ordinances related to pension and DROP benefit payment calculations, analyzing payroll information supporting benefit calculations and testing management controls.
The Risk Management Department oversees and coordinates all aspects of the retiree process, completing retiree maintenance forms, reviewing applications for pension, calculating pension benefit estimates, entering vested future employee records and forwarding retiree information to the Finance Department's Payroll Division for data entry. The Payroll Division is responsible for entering retiree records into the retiree payroll system, processing monthly pension checks and calculating retiree and DROP participants' final average earnings. We would like to acknowledge the management and members of the Risk Management and Finance Departments for their professional courtesy and cooperation during our review.
As for all of our audits, we conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our conclusion based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our conclusion based on our audit objectives.
Conclus...
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