Audit requirements for payroll records
Schools' financial statements are required to be audited each year. Schools should keep payroll records to support the school's annual financial statements.
See the Financial information for schools handbook Ch 2.8 Audit process, which can be found here: Managing school finances (Education.govt.nz).
Report retention
It is recommended that checked and signed copies of the reports listed below be kept until the year's financial audit is completed.
Staff Usage and Expenditure (SUE) reports, timesheet and leave records, and the School Annual Accrual report are most likely to be asked for, however any or all reports may be required.
Signed copies confirm that these reports have been checked in an appropriate and timely manner.
Transaction reports
Transaction reports did not move across to EdPay when Novopay Online was switched off in October 2021.
You'll need to retain copies of your transaction reports up until 5 October 2021 for any timesheets and leave completed in Novopay Online, and until 19 October 2021 for any changes to employee information completed in Novopay Online.
Reports in EdPay
EdPay timesheet and leave reporting has a live transaction history which can be downloaded as a CSV file.
We recommend you download the timesheet CSV on the 1st SUE report day (Friday), and then again on the final SUE day (Tuesday) to see any final changes that have been made within this pay period.
The leave history will show all leave bookings, and you can filter by leave type or employee number before downloading the CSV.
SUE reports are available from the Reports screen in EdPay.
Report checking
School boards should have processes in place for reports to be checked, including:
- who is responsible for the checking
- how the checking is confirmed on the report, eg signature and date of checking
- how the board know the checking is completed in an appropriate and timely manner.
It is best practice with any report produced for the purpose of checking a financial transaction, to print and sign it to confirm it has been checked. The report(s) should then be filed and available for review by school auditor(s) to confirm that appropriate checking processes are in place and being followed.
Payroll instructions
After instructions have been checked against the 1st SUE report and EdPay screens (activity history, timesheet, leave), store the original form or print screen in the employee's personal file.
All forms need to be retained at the school for audit purposes.
Education Payroll doesn't require signed copies of forms that are sent electronically. However, it is good practice to obtain the employee's signature on these forms.
Forms that are posted to Education Payroll must be signed, and a copy retained at the school.
See Completing forms.
School Annual Accrual Report
The School Annual Accrual Report (SAAR) is the annual financial summary and must be kept for seven years as part of the financial statements.
Related links
Information for: