Claremore Daily Progress

Government

November 3, 2013

OTEMS audit reveals payroll fraud

(Continued)

CLAREMORE —

At the time of the payroll issues, records were kept manually, according to Deal. Since the issue became apparent OTEMS has outsourced payroll through Paycom and employees are required to track their time online, according to Deal.
The new system was put in place in August 2012, according to the audit.
The administrators asked the auditors for assistance when they noticed inconsistencies in the records, according to Pond.
“In the process of starting the regular audit, we alerted them of some issues, Pond said.”
The audit’s notes finds the EMS districts annual estimate of needs for funding and including an overstatement of funds by $205.65.
Other issues included having only one employee to sign checks, when two signers should be used to avoid unrecorded transactions, misstated financial reports or undetected errors, according to the audit. Two of 25 checks reviewed had no signature on the document, according to the audit.
Additionally, inventory controls were not in place in 2011, according to the audit. There were no fixed asset listings and an annual physical count was not performed, according to the audit.
Inventory is kept current as items are donated or purchased, according to Deal.
One other item was noted in the audit. OTEMS had not properly accounted for the funds needed to pay for an audit. The audit lists the finding as a noncompliance with statute by underfunding the Audit Expense Account.
Deal said because they had never had a state audit they did not realize how much it would cost and the issue has been corrected.
OTEMS has made arrangements to avoid the issues listed in the audit and improve internal controls, Deal said.
“We have made all the arrangements we can so we don’t touch any money,” Pond said.
Administrators are doing everything possible to improve internal controls despite the challenge of a small department and budget, according to Deal.

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