Though many companies still use manual time sheets or punch cards, a va­riety of other computerized timekeeping devices are available, such as clocks equipped with scanners to accommodate employee badges equipped with magnetic, radio frequency identification (RFID), or bar-coded identi­fication tags, Web-based time reporting, Voice over Internet Protocol (VoIP) phones with timekeeping features, and even cell phones with time report­ing functionality. All these systems can be configured to automatically load timekeeping information directly into the computerized payroll computa­tion system.

There is no need for a flowchart to enumerate the controls associated with computerized timekeeping, since the controls only involve the appro­priate use of automated features within the timekeeping systems. The key controls follow.

• Time clock controls clock-in times. A computerized time clock can block out the hours when employees are allowed to clock in or out, thereby keeping them from clocking in for excessive hours or during incorrect shifts. This control requires extra effort to load into the computer sys­tem the exact times during which each employee is authorized to work as well as ongoing maintenance of this information.
• Time clock requires supervisory approval of overtime. A computerized time clock typically categorizes each employee by a specific work pe­riod, so that any hours worked after his or her standard time period will be flagged automatically by the computer for supervisory approval, possibly including a clock-out rejection unless a supervisory approval code is entered on the spot.
• Review time clock reports for irregular entries. A computerized time clock generates a variety of reports that itemize such information as missed punches, late punches, and overtime hours worked. These re­ports are a prime source of control information, and should be exam­ined regularly by supervisors to locate incorrectly reported work hours.

Though the preceding controls are sufficient for a computerized time­keeping system, the next additional controls can bolster the overall system of controls.

• Use biometric time clocks to eliminate buddy punching. A common fraud is for an employee to give his badge to another employee, who uses it to clock in the first employee, even though the first employee is not on the premises. By using a biometric clock that matches either the fingerprints or hand outline of an employee, “buddy punching” is eliminated.
• Link photo images of employees to badge scanner. Another way to de­tect buddy punching is to install a camera that snaps an electronic pic­ture of anyone at the moment they scan a badge through the time clock, thereby linking a face to a badge. Even if the camera is not operational, its mere presence may act as a deterrent to buddy punching.

• Require daily supervisory reviews of hours worked reports. Even those supervisors with extraordinary memories will have a difficult time re­membering which of their hourly staff members were on hand during various times of the day over the preceding weeks. To ensure a more knowledgeable review of time records, require supervisors to review hours worked at the end of every shift, using a daily timekeeping report from the computer system.

[tags]computerized timekeeping, controls timekeeping[/tags]

Tags: computerized timekeeping, controls timekeeping