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County payroll problems prompt audit work and push for fixes; commissioners ask for patience
Summary
Mercer County commissioners heard an extended briefing on persistent payroll and accounting problems tied to a new county software rollout. The county engaged auditors, is working with the vendor, and will consider options including in‑person vendor support and potential payroll outsourcing if problems persist.
Commissioners spent a lengthy portion of the meeting addressing ongoing payroll and financial-software problems that have affected pay stubs, bank reconciliations and budget reports.
County staff told the board they have engaged Eide Bailey to examine payroll variances and produce a preliminary report. The outside reviewer is preparing a workbook comparing how payroll should have been processed with how it actually ran, tracing corrections in subsequent pay periods and identifying tax and benefit variances that must be fixed. Staff said Eide Bailey’s preliminary findings were expected imminently.
Commissioners, the auditor’s office and department heads described a range of errors that have affected January through subsequent pay periods. The county’s payroll vendor and implementation partner (referred to in the meeting as the software vendor and consultants) will send a technical team to the county the week of April 14 at no additional charge to address immediate problems, staff said. Payroll, staff told commissioners, is the top priority for the vendor’s on-site visit; bank reconciliations and budget reporting will follow.
County personnel urged employees to review pay stubs and to notify the auditor’s office or HR in writing of any discrepancies. The board discussed but did not yet approve outsourcing payroll; commissioners said they will wait to see the auditor’s report and vendor follow-up before making a long-term decision. One sealed bid for payroll services was received and retained unopened while the county assesses the vendor fix and Eide Bailey’s audit.
Human Resources staff reported low morale among employees because of the errors and urged clearer communication. Commissioners acknowledged the reputational and morale risk and asked staff to prioritize making employees whole and to provide plain-language guidance explaining new pay-stub fields. The board said it is prepared to call a special meeting to act on any audit recommendations once the external audit is delivered.
No new financial remedies were adopted at the meeting; commissioners asked staff to continue working with the vendor and auditors and to report back with the audit’s findings.
