Katonah-Lewisboro audit leads to HR reorganization and added checks on payroll

Administration told the board March 26 that a recent internal audit of payroll and human-resources processes identified control weaknesses, inconsistent recordkeeping and overlapping duties that increased operational risk.

The audit identified problems including outdated or missing required forms, inconsistent use of the district’s accounting/HR system (Envision), and a single-person bottleneck where one staff member carried overlapping responsibilities for payroll and benefits. "There wasn't somebody double-checking it," the audit presenter said, noting risks tied to substitute pay and final payouts.

As a result, the district formally moved benefits administration into Human Resources, created a new benefits-assistant position and reallocated payroll integrity responsibilities to the business office to create separation of duties. Administrators said those steps increase oversight and provide a ‘‘second look’’ for key transactions.

District staff reported compliance work already completed: updating I-9s, completing 1095 filings, and beginning a comprehensive internal audit of active personnel files. The district set a deadline of June 30, 2027 for completing the personnel-file work and fully integrating the new structure and procedures.

Trustees also asked about the district’s software environment. Presenters said Envision does not directly integrate with the biometric/time-swipe system or the frontline attendance system; monthly imports are used instead. Administration described ongoing vendor training and regional support to reduce friction between systems.

The audit committee recommended repeating the payroll/HR review in the next audit cycle to verify that the new controls are operating as intended.