Employer Self Audit
What to Expect When DRS Auditors Come to Perform an Audit
Purpose of Employer Audits by DRS Audit Unit
To ensure that complete, accurate data is maintained on DRS' computer systems, the Employer Audit Unit conducts random -- or requested -- audits of employers. This service is important to you, your employees and the State Actuary. It improves the quality of our actuarial data, reduces the costly results of administrative errors for you and your employees, and increases the efficiency of our internal operations. The importance of maintaining accurate records cannot be overemphasized.
Our audit procedures focus on four areas. When an audit is performed, we:
- Determine membership eligibility for all your employees, and identify those employees who are eligible but are not being reported, as well as those who are being reported but are not eligible;
- Verify that you're correctly reporting all earnable compensation, and that you're reporting compensation as earned, rather than paid;
- Verify that the Average Final Compensation/Final Average Salary we used for final benefit calculations for retirees was correctly reported by you, and;
- Assist you with our reporting requirements and provide any training you need.
Records you'll need
- Payroll registers, timesheets, salary schedules, leave tracking records and W-2s
- Personnel policies and union bargaining agreements
- Employment contracts, personal service contracts and 1099s
- Additional payroll registers, timesheets and personnel files of your recent retirees
