Payroll Audit Report
City of Stockton
AGENDA
Payroll Updates & Employee Payroll Errors
CalPERS Errors & Reporting
Executime Timekeeping Module
General Ledger (GL) Error Report
Next Steps
2 PAYROLL UPDATES & EMPLOYEE PAYROLL ERRORS
3 Payroll transitioned to HR on March 10, 2025
Identified that the State Quarterly Reports (DE9C) were not submitted for Quarter 1 of 2025. The team compiled and submitted to EDD for Personal Income Tax, State Disability, and Unemployment Insurance.
Building an annual task calendar of all State and Federal due dates to prevent late submissions moving forward.
Reviewing all system pay codes and ensuring correct set-up. Review will also include retitling and archiving for departmental ease.
Tested mid-pay period pay changes and identified that they are not supported in Munis due to the bi-weekly updates/reconfiguration. This will require a major project to reconfigure base pays along with other affected screens. We will implement, test, and ensure appropriate prorate for the 7/1 COLA.
No major employee related Payroll issues reported to Payroll as of 6/10.
CALPERS ERRORS & REPORTING
4 Payroll continues to work with our consultants to identify and address errors that are impacting CalPERS reporting.
Payroll submission to CalPERS is current and up to date.
Payroll submission reports are pulled from CalPERS to identify errors.
Once errors are identified and corrected in CalPERS, the consultant then looks at the MUNIS system to make appropriate changes to prevent future errors.
CALPERS ERRORS & REPORTING
5 Prior to Payroll’s transition to HR, CalPERS errors were generating approximately 700–900 errors per pay period upon initial submission. Since transitioning, the number of errors has significantly decreased.
Key error identified: Setup issue with the deduction codes. Consultants worked with Payroll to correct the configuration for accurate initial reporting.
CalPERS representatives advised that configuration errors can trigger false error messages. A temporary resolution is to manually re-save each record for successful system submission.
Payroll continues collaborating with consultants to identify root causes, implement long-term fixes, and improve accuracy of CalPERS reporting.
Error Reduction by Pay Period
April 20 – May 3
320
May 4 – May 17
220
May 18 – May 31
207
EXECUTIME – TIMEKEEPING MODULE
6 Completed timecard approval workflows set up to align with organizational reporting structure for the following departments: ASD, CA, CC, CMO, CDD, EDD, HR, IT, PD, and CSD Completed timecard approval workflow training.
Successfully tested shifts crossing the midnight hour and confirmed they are correctly included in the current pay period for PD and MUD.
Successfully tested the ability to limit the Project Ledger dropdown on employee timecards.
Met with departments and confirmed the Clock In/Clock Out feature isn’t useful since employees still have to manually enter standby and call-back hours.
Continuing to meet with departments to build comp time and overtime rules. Will perform testing to ensure calculation accuracy.
Tyler’s development team has provided a workaround for the daily time lock, while they continue working toward a long-term solution.
GENERAL LEDGER (GL) ERROR REPORT
7 Payroll cannot post to the General Ledger if errors are present on the GL Error Report.
Previously, these errors were not being addressed.
Weekly meetings are held with Payroll, Accounting, Budget, and consultants focusing on resolving these errors.
Issues identified so far:
Medicare deduction codes generated an error due to missing the object code segment, which prevented the account from defaulting properly—once corrected, related errors were cleared.
Project Codes used to charge employee expense to projects – the vendor/team have identified how to address and create rules in the system to reduce future incidents from occurring.
Small fixes often resolve multiple errors
NEXT STEPS
8 Continue bi-weekly coordination meetings with HR, Payroll, the ERP Team, and consultants to monitor progress and align efforts.
Maintain weekly GL Error Report reviews with Payroll, Accounting, Budget, and consultants to identify and resolve outstanding issues.
Leverage a test environment to reconfigure base pay codes and validate that the system prorates pay accurately and efficiently.
Annual Task Calendar for Payroll deadline is being developed Training Manuals are being created
Cross-training is being conducted with entire payroll team Checklists are being created
MOU review
CalPERS contract review
Pay Code review and update
QUESTIONS
9