VILLAGE OF WALDEN – A state audit has found that the Village of Walden made at least $144,767 in unsupported, unauthorized, or inaccurate payroll payments and employee benefits, including questionable overtime and errors in payments to departing employees.
The report from the state Comptroller’s Office examined village payroll and leave records from June 2021 through May 2023, with additional reviews extending into 2024.
Auditors found $87,265 in payments to six employees without adequate time records and $17,854 in overtime payments to two village court clerks without documentation showing the required approval. The report also identified errors in all 12 separation payments reviewed, resulting in $13,579 in overpayments and $14,640 in underpayments.
In one instance, the former village treasurer calculated her own separation payment, which the village manager did not review. She later processed payroll that included the payment after resigning in January 2024.
The audit also found hundreds of instances of employee leave being used without proper approval, shifts changed without documented authorization, and payroll-system changes made without adequate oversight. The treasurer also changed her own pay rate in the village’s financial software without notifying the manager or obtaining approval, although the rate matched the salary in the adopted budget.
The Comptroller’s Office attributed the problems to weak internal controls and inadequate documentation. It issued 14 recommendations to improve payroll oversight, recordkeeping and compliance with village policies and labor agreements.
Village officials agreed with the findings and recommendations. In a Sept. 22 response, Mayor Becky Pearson outlined corrective measures, including signed time sheets, documented leave requests and additional reviews of payroll changes and separation payments.
The village said the measures had been implemented or would be immediately as of August of this year.
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