Audit requirements for payroll records

Schools' financial statements are required to be audited each year. Schools should keep payroll records to support the school's annual financial statements.

See Financial Information for Schools Handbook: Ch 2.8 Audit process (Ministry of Education website).

Report retention

It is recommended that checked and signed paper copies of the reports listed below be kept until the year's financial audit is completed. The Transaction reports, SUE reports and the School Annual Accrual Report are most likely to be asked for, however any or all reports may be required. Signed copies confirm that these reports have been checked in an appropriate and timely manner.

School Annual Accrual Report

The School Annual Accrual Report (SAAR) is the annual financial summary and must be kept for seven years as part of the financial statements.

Report checking

School boards of trustees should have processes in place for reports to be checked, including:

  • who is responsible for the checking
  • how the checking is confirmed on the report, e.g. signature and date of checking
  • how the board know the checking is completed in an appropriate and timely manner.

It is best practice with any report produced for the purpose of checking a financial transaction to print and sign it to confirm it has been checked. The report(s) should then be filed and available for review by school auditor(s) to confirm that appropriate checking processes are in place and being followed.

Payroll instructions

After instructions have been checked against the draft SUE and transaction reports, store the original form or print screen in the employee's personal file.

All forms need to be retained at the school for audit purposes.

  • The Education Payroll Service Centre does not require a signed copy of forms that are sent electronically. However, it is good practice to obtain the employee's signature on these forms.
  • Forms posted to the Education Payroll Service Centre must be signed, and a copy retained at the school.

See Completing NOVO forms.

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