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Audit of Behavioral Health Payroll

The Salt Lake County Auditor’s Audit Services Division completed an audit of the Salt Lake County Behavioral Health Services Payroll Operations for the period of September 1, 2021, to August 31, 2022. The audit was performed in conjunction with a Countywide Audit of Payroll Operations, focusing on Mayor’s Finance Administration (Payroll Administration), Human Resources, and twelve County Agencies.

For the audit period, the Behavioral Health Services’ payroll encompassed a workforce of 30 employees, with cumulative earnings of $2 million.

The Behavioral Health Services’ Human Resources and Payroll Coordinators are entrusted with the responsibilities of employee hiring, rehiring, promotions, terminations, as well as processing timekeeping and special allowances.

PAYROLL (e SALARIES

I am writing to present the findings of our recent audit of the Behavioral Health Payroll operations for the period from September 1, 2021, to August 31, 2022. The audit was aimed at evaluating the internal controls over payroll processes. We identified several areas that necessitate immediate corrective action. These include inconsistencies in conducting required background checks before employment, issues with timecard approvals, a lack of clarity in managing retroactive payments, inadequate documentation for overtime compensation, and inaccuracies in W-4 data entries in the payroll system.

These findings highlight the need for strengthened internal controls and adherence to established procedures to mitigate risks of operational inefficiencies and compliance issues.

We urge the Behavioral Health Department to review and promptly implement the recommendations outlined in the attached audit report. Failure to address these issues could result in significant risks to the county's operations and financial integrity.

This audit was authorized under Utah Code Title 17, Chapter 19a, “County Auditor”, Part 2, “Powers and Duties.” We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions.

We appreciate the cooperation of all involved departments and offices during this audit. For further details, please refer to the enclosed detailed audit report. Should you require any further information or clarification, please do not hesitate to contact me at 385-468-7200.