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Payroll vendor error left district responsible for nearly $17,000, staff say
Summary
Staff reported a payroll-vendor setup error that resulted in employer-side liabilities not being remitted while employee withholdings were taken; the district said the shortfall totaling about $17,000 across multiple pay periods is being reconciled and that city staff helped correct the problem.
Kelly updated the board April 19 on a payroll reconciliation problem that has consumed staff time since last October. She said a vendor did not remit employer-side liabilities while still withholding employee amounts, producing an aggregate shortfall of almost $17,000 covering multiple pay periods from April 14 through May 12.
"We had a almost a $17,000 bill that we had to pay back," Kelly said, adding that the issue spanned multiple payrolls because employer payments had not been sent. She told the board she and city staff member Emma worked long hours to straighten the accounts and that the district is close to resolving the reconciliation.
Kelly described working with a vendor contact who helped correct the setup and she thanked Emma for her extensive work on the issue, saying she had sent flowers in appreciation. The board set the financial reports aside for auditors to review when they arrive.
The update did not include a line-by-line reconciliation in the meeting record; Kelly said the $17,000 total covered employer liabilities across several pay cycles and that staff will continue to reconcile with the vendor and the city.
