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The aim of this study was to evaluate the effectiveness of internal control system over
payroll in Tanzania Electrical Supply Company Limited (TANESCO). The study sought
to have the following objectives: (a) To explore whether/if employees are identified to
the cashier by means of identity cards or by their foreman, (b) To explore whether the
key procedures are followed in payment of salaries and wages, (c) To explore whether
payroll section has full details necessary to support the net pay of each employees. (d)
To determine whether time ticks production reports and other accounting data on which
payroll calculations is based, are approved by department/foreman who taken no part in
preparation and distribution of payroll. The sample of this study consisted of 39
respondents who were all selected randomly from the staffs and employees of the
organization (TANESCO) head office in Dar es Salaam. The data selection methods
were questionnaires, interview, Document review and observations.
The researcher through findings related to these objectives found out that, some of the
employees in the organization are identified by means of their foremen especially for
cheap labours, while other employees of the organization are professional employees are
identified with the senior manager human resource office and its core department. It was
also evident that internal controls used in TANESCO Limited were effective and
satisfactory for the identifications of employees by cashier to avoid fraud and errors by
means of updating of employees master file on monthly basis and Payroll department
also identify the employers and employees by a federal code called company number. In
addition, it was revealed that salaries and wages being paid through cheques by
imposing and following controls to avoid ghost payroll payments, Fraud and Errors.
The researcher really hopes that output from this study shall be of practical use to
TANESCO Ltd. |
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