‘Significant’ payroll errors found at company under PM’s remit
RSSL set up in 2003 to employ people made redundant by other government-owned entities and redeploy them elsewhere in the public sector
An audit has uncovered “significant errors” in the payroll processes of a company falling under the direct control of the prime minister’s office.
The errors at Resources Support and Services Ltd (RSSL) led to a number of overpayments to its employees, including one worker on reduced hours still receiving full-time allowances.
The employee, who had been working on a reduced hour basis since October 2023, was still paid allowances in full, resulting in an overpayment of €12,971 for 2024.
In other examples uncovered by the auditor general, an employee who was meant to be docked €2,411 for overpaid allowances in previous years never had the amount reduced from his salary, and another employee was paid twice for a shift and Sunday allowance, leading to an overpayment of €662.
Another employee was not so lucky, with the auditor general noting how the 2023 cost-of-living adjustment was never added to the worker’s pay.
The auditor general emphasised that these examples, based on a sample of 30 employees, are not to be considered an exhaustive list, and further errors cannot be ruled out.
It was noted how payroll adjustments are manually entered in a spreadsheet and then forwarded to the payroll contractor for processing.
The auditor general found no internal verification procedures in place to ensure the accuracy of keyed adjustments and the reliability of information submitted to the payroll contractor
Despite the heightened risk of human error, inaccuracies and inconsistencies associated with manual processes, the auditor general found no internal verification procedures in place to ensure the accuracy of keyed adjustments and the reliability of information submitted to the payroll contractor.
Furthermore, verifications by RSSL on the contractor’s work is only carried out on an “exceptional basis”.
The auditor general recommended the introduction of automated tools to replace the manual spreadsheets used for payroll, reducing the chance of human error and providing a reliable audit trail.
In response to the findings, RSSL said a sudden influx of 300 employees, the bulk of which came from the now defunct Air Malta, had created enormous pressure on RSSL’s financial and administrative capacity.
The company committed to strengthen its random testing of the payroll data.
RSSL was set up by the government in 2003 following a restructuring exercise at the Malta Shipyards. It is headed by Lawrence Mizzi.
The company’s main activity is employing people made redundant by other government-owned entities and redeploying them elsewhere in the public sector.
Despite a budget of €17.5 million and a headcount of 629 employees, the audit found RSSL has no documented policies or procedures in place governing its operations.
While certain practices have developed over the years, no formal documentation is in place. As a result, business continuity may be disrupted in the event of staff turnover, the auditor general said.
In response to the audit’s findings, RSSL said it would hold discussions with the prime minister’s office to define and formalise a mission statement for the company.
While RSSL does not have its own formal policies, the company said it follows provisions emanating from the public service management code.