The Harlan Independent Board of Education discussed the advantages of going to anautomated payroll system for all employees during a meeting on Tuesday.
Board Chairman Joe Meadors called the meeting to order.
“I wanted to brief the board on something I’m thinking about doing,” Superintendent C.D. Morton said. “One of the things I would like to see us do is to move away from generating the traditional check.”
Morton explained there are several advantages in requiring all employees to use direct deposit.
“One is, it would reduce the number of checks that we have in the building that can be accessible and filled out fraudulently,” Morton said. “Second, it would speed up the payroll process…three, it would greatly improve the reconciliation process.”
Morton said the school system issues a lot of checks each month that have to be kept up with.
“Anytime somebody holds a check or it doesn’t get deposited for some time, it throws that bank reconciliation process off or at least delays it for a while,” said Morton. “The other thing it would do for us is it would eliminate the need to mail checks that costs 50 cents a check to mail.”
Morton said direct deposit would help with holiday disbursements.
“On the employees’ end, they would still get what we call an advice statement,” Morton said. “Basically, it looks just like a check…and it tells you where your money’s gone.”
Morton also advised the board of possible barriers the school could face with direct deposit, such as the possibility some employees could have difficulty maintaining the minimum balance required by some banks in order to have a checking account.
He said there are banks and credit unions which offer low cost products that would suffice for direct deposit.
“What I’m going to propose is…any new employee is required to do direct deposit,” Morton said. “Any existing employee that is not using direct deposit, we would expect them to move to that before July 1. That would give them five months to make arrangements to have direct deposit in place.”
Morton asked the board for feedback.
“In the longrun, I believe it will be beneficial for the employees,” said Meadors.
Meadors pointed out that direct deposit ensures employees their money is available when it’s deposited.
“If they have to be out of town and they have access to an ATM, their money will be available,” Meadors said. “They don’t have to wait.”
In other board activity:
• The board approved its regularly scheduled meeting to continue to be held on the third Thursday of the month at 5:30;
• The board approved a resolution for legal services;
• The amended 2015-2016 school calendar was approved;
• The board approved the acceptance of an offer of assistance from SFCC.
Reach Joe P. Asher at 606-909-4132 or on Twitter @joe_hde