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County orders third-party review of payroll and benefits after coding error affecting vacation accruals
Summary
After auditors found a payroll/benefits coding error that affected vacation accruals, the Board of Supervisors directed a comprehensive third-party review — covering payroll, benefits administration, timekeeping and approvals — and asked staff to define lookback limits and legal exposure.
San Bonito County officials on April 28 directed a comprehensive third-party review of payroll and benefits administration after the county auditor reported a coding error affecting vacation accruals for multiple employees.
County counsel and the auditor's office described an apparent coding problem in the ERP system that, according to initial internal numbers, may have affected roughly 134 employees and accumulated about 355 hours of vacation accrual over several years. Auditor Joe Paul told the board the issue arose in a benefits rule that was changed in 2020 and that HR and payroll functions are segregated; he urged a compliance audit focused on benefits administration.
County counsel recommended a broad review to identify possible related errors across payroll, timekeeping and benefit coding. HR staff said the error appears to be tied to leave-without-pay rules and that the payroll office does not have authority to alter HR benefit settings.
Supervisors emphasized the importance of understanding the full financial scope and limiting future risk. The board voted unanimously to authorize a third-party audit/peer review covering payroll, benefit administration, time-sheet approvals and internal controls, and asked the auditor and county counsel to recommend a legally appropriate lookback period and scope for corrective actions.
Next steps: staff will issue a scope for a third-party audit, coordinate with bargaining units and return to the board with findings and recommended remedies, including potential adjustments, remedies and fiscal implications.
