ITEM 3.4 Payroll timekeeping policyOtkgoF
MINNESOTA
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT
REQUESTOR:
MEETING DATE:
Administration
City Administrator/Finance Director Flaherty
September 10, 2018
PRESENTER(s)
REVIEWED BY:
ITEM #:
Consent
City Attorney MacArthur
HR/Deputy Clerk Grover
3.4
STRATEGIC VISION
MEETS:
THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
No
Has proactively expanded infrastructure to responsibly provide core services.
BACKGROUND/JUSTIFICATION:
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
identified that the City does not have an applicable policy related to electronic time recording systems. The
Is a social community with diverse housing, service options, and employment opportunities.
In order to avoid a future audit deficiency and to be in compliance with Minnesota Statute §412.271, City
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council adopt the newly created payroll timekeeping policy.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
During routine procedures involved in the City's most recent audit, BerganKDV, the City's audit firm
identified that the City does not have an applicable policy related to electronic time recording systems. The
auditors provided a verbal recommendation to City staff that the City adopt such a policy.
In order to avoid a future audit deficiency and to be in compliance with Minnesota Statute §412.271, City
staff has developed a Payroll Timekeeping Policy. The primary objectives of the policy are:
1) To ensure compliance with Minnesota Statute §412.271, Subd. 2-C,
2) To ensure that timekeeping and payroll methods used are accurate and reliable.
3) To establish uniform timekeeping procedures for all City staff and across all departments.
This draft policy has been reviewed by HR/Deputy Clerk Grover, the City Attorney, as well as all Supervisors
at the City. This draft policy was presented and reviewed with the Administrative Sub -Committee on
August 16, 2018. There was concurrence for the draft payroll timekeeping policy to be placed on the
agenda for a future City Council meeting.
Upon adoption by the City Council, the policy will be distributed and discussed with all City staff.
SUPPORTING DOCUMENTS ATTACHED:
• Draft Payroll Timekeeping Policy
• Resolution 2018-54
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to approve Resolution 2018-54 adopting the payroll timekeeping policy.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
CITY OF 0
Ot e
MINNESOTA
PAYROLL TIMEKEEPING POLICY
ADOPTED: N/A—This is a draft policy. Council to consider on 9/10/2018.
1. OVERVIEW
This policy outlines information pertaining to recording and tracking hours of work and accruals.
2. OBJECTIVES
This policy has the following objectives:
A. To ensure compliance with Minnesota Statute §412.271, Subd. 2-C.
B. To ensure that timekeeping and payroll methods used are accurate and reliable.
C. To establish uniform timekeeping procedures for all City staff and across all departments.
3. OFFICIAL PAYROLL SYSTEM
The City of Otsego uses a third -party web -based software as the official timekeeping system
(the Software), which is a time and attendance system that tracks compensable hours and
employee accruals (PTO, COMP).
4. TIMEKEEPING PROCEDURES
The following procedures are established for recording and approval of timecards:
General
The regular work week is Monday through Friday. The pay period for all employees is for a two-
week period (14 days), beginning on a Sunday and ending on a Saturday.
The deadline for timecards to be entered and approved by the employee, as well as being
reviewed and approved by the Supervisor is 9:00 AM the Monday following the end of a pay
period unless otherwise directed by Payroll staff.
Employees will be compensated on the Wednesday following the end of a pay period, unless it
falls on a holiday, in which case employees will be compensated on the Tuesday following the
end of a pay period.
Recording Hours - Employee
All employees of the City are required to enter hours within the Software for each and every
compensable pay period. Entered hours should be recorded to the nearest 1/4th of an hour (15
minutes). Entered hours should be recorded on the respective day of the week within each pay
period. Entered hours should differentiate between the different types of compensable time,
which includes, but is not limited to: Work, PTO, Holiday, Comp -Time, Etc.
Approving Hours - Employee
All employees of the City are required to approve the entered hours at the end of each pay
period. This approval is completed within the Time Card function within the Software.
With the Employee's affirmation or approval of the entered hours, the Employee is agreeing to
the following declaration, which shall be the same as if subscribed and sworn to under oath:
1 declare under the penalties of perjury that to the best of my information and belief the
entered hours for this payroll are correct.
Employees are responsible for inaccuracy or omission of which they are aware of at the time
the electronic timecard was approved. Employees may be subject to disciplinary action in
accordance with the City Personnel Policy for purposefully submitting inaccurate timecards.
Approving Hours - Supervisor
The Supervisor is required to review and approve the electronic timecards of all employees
assigned to your department. The Supervisor is responsible for verifying the completeness and
accuracy of the electronic timecard. The Supervisor approval is completed within the Time
Cards function within the Manager Dashboard of the Software.
Supervisors who will knowingly be out of the office and unable to approve their employees
time cards must notify both the City Administrator and Payroll staff, one of whom will approve
the employees time cards in their absence. In such an instance, the Supervisor is required to
review the timecards after the Payroll has been processed, and indicate their review with
written initials or signatures on each of their employee's time cards.
S. EMPLOYEE ACCRUALS PROCEDURES
The following procedures are established for recording and approval of employee accruals:
General
The Software will maintain employee accruals for personal -time off (PTO) and compensatory
time off (COMP). Employees access the information within the Time Off function within the
Software. Employees are responsible for notifying the Payroll staff if the employee accrual
hours are inaccurate within the Software.
Personal Time Off (PTO)
PTO is outlined in detail within the City's Personnel Policy. The Software is merely a tool for
requesting, approving and tracking of PTO accruals for each employee.
Compensatory Time Off (COMP)
COMP is outlined in detail within the City's Personnel Policy. The Software is merely a tool for
requesting, approving and tracking of COMP accruals for each employee.
Requesting Hours - Employee
All employees are required to submit a request to use accrual hours within the Time Off
function within the Software. Whenever possible, requests should be made in advance of the
requested time off. Upon submitting the request, a notification is provided to the Supervisor for
review of the respective request.
Employees are required to submit a cancellation of a request to use accrual hours if the
respective request has already been approved by the Supervisor.
Approving Hours - Supervisor
The Supervisor will receive a notification upon an employee submitting a request for time off.
The Supervisor is then required to review the request for time off and provide approval or
denial of the request. The Supervisor should complete the review of the request for time off
within one week of receiving notice of a request.
In instances of a denial of the request for time off, the Supervisor is responsible for providing
clear communication to the employee for the reason of the denial.
Upon approval of the Supervisor, the hours requested will automatically populate within the
employee's time card and will also populate within the Time Off Calendar within the Software.
The Time Off Calendar is only available to Supervisors for viewing.
6. CORRECTIONS OR PROBLEMS
In the event either an Employee or Supervisor becomes aware of a needed correction or problem
within the Software, the City Administrator and/or the Payroll staff should be notified
immediately. The respective corrections will be made in the following pay period.
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2018-54
APPROVING PAYROLL TIlVIEI(EEPING POLICY
WHEREAS, Minnesota Statute §412.271 Subd 2(c) outlines that a city may use electronic time recording
systems if the governing body of the city adopts policies to ensure that the timekeeping and payroll methods
used are accurate and reliable; and
WHEREAS, the City currently has no formally adopted policies in place that address the requirements of the
respective Minnesota Statute above; and
WHEREAS, the City has developed a policy; and
WHEREAS, the City Council has met to discuss and review the policy; and
WHEREAS, the City Council has determined that the policy shall be in force and effect upon the date of
adoption of this resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO,
MINNESOTA:
1. That the Payroll Timekeeping Policy as attached hereto is hereby adopted effective immediately.
ADOPTED by the Otsego City Council this 10th day of September, 2018.
MOTION made by Council Member
IN FAVOR:
OPPOSED:
2
ATTEST:
CITY OF OTSEGO
Jessica Stockamp, Mayor
Tami Loff, City Clerk
and SECONDED by Council Member