Standards of Internal Controls - Arizona State University

4.3.5 Spoiled, voided and/or canceled
checks should be accounted for and
immediately destroyed, provided the
destruction is witnessed and
documented by an additional
individual.
Refer to risk: C-3
4.3.6 Signed payroll checks, manual
warrants, and direct deposit advices
should be secured until distributed to
employees.
Refer to risks: C-4, C-5
4.3.7 Payroll check signatories should be
individuals having no payroll
authorization or preparation
responsibilities, access to the unused
checks or check distribution
responsibilities.
Refer to risks: C-3, C-4
4.3.8 Completed payroll registers, journal
reports and requests for payroll
account reimbursement (or similar
documents to support the amounts
being paid) should be reviewed and
approved by appropriate financial
management prior to disbursement.
Refer to risk: C-6
4.3.9 Formal authorization procedures
should be established and adhered to
in the signing of payroll checks. Dual
signatures are required on all
manually signed checks above the
limit established by the university.
Refer to risk: C-3
4.3.10 Where check signing equipment and
facsimile signature plates or digitized
signature images are utilized, the
equipment and plates should be
secured and custody of the check
signing equipment and the signature
plates or digitized signature image
files should be segregated. In
addition, reconciliation of checks
written should be compared to the
check signing machine totals.
Refer to risks: C-2, C-3
C-5 Confidential payroll information may
be reviewed and/or disclosed by
unauthorized persons to the detriment
of the university or its employees.
C-6 Significant payroll errors or
unauthorized transactions may not be
detected prior to payroll distribution.
C-7 Duplicate check numbers may be
assigned or check numbers may be
omitted.