UNIVERSITY OF NEVADA, RENO HUMAN RESOURCES Internal Audit Report July 1, 2005 through March 31, 2007

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1 UNIVERSITY OF NEVADA, RENO HUMAN RESOURCES Internal Audit Report July 1, 2005 through March 31, 2007 GENERAL OVERVIEW The University of Nevada, Reno (UNR) Human Resources (HR) Department serves the personnel needs of academic and administrative faculty on campus, as well as individuals employed through letter of appointment (LOA) contracts, postdoctoral fellows and campus student workers. The department is responsible for processing and maintaining the employment contracts and related personnel documents and provides support to the faculty search process. The department also performs salary surveys, compensation analysis, institutional salary studies, and provides training and development opportunities to university employees in the areas of personal and professional growth. SCOPE OF AUDIT The Internal Audit Department has completed a review of the HR Department at UNR for the period of July 1, 2005 through March 31, The scope of our review included tests of the personnel files and forms and other auditing procedures as we considered necessary. The tests included, but were not necessarily limited to, these areas. 1. Reviewing personnel and search files for required documentation. 2. Testing expenditures for propriety, supporting documentation and proper signature approvals. 3. Reviewing the controls over long-distance telephone charges. 4. Reviewing leave records and timesheets for completion and proper approval. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 1 of 40

2 5. Reviewing grant-in-aid and grievance procedures and forms. In our opinion, we can be reasonably assured that the HR Department is operating in a satisfactory manner. However, implementation of the following recommendations would further improve operations. FILE REVIEW The Internal Audit Department selected a sample of 41 academic and 31 administrative employees, 26 employees on LOA contracts, seven postdoctoral fellows and 39 student employees. The personnel file of each of these employees was then reviewed to determine whether the proper employment documentation was completed and was included in the files. Exceptions that were noted for two or more of the employee types reviewed are included under the Common File Review Findings below. The remainder of exceptions is listed by employee type. Common File Review Findings 1. Of the 72 academic and administrative employee files reviewed, 32 files contained letters of renewal that were issued in lieu of signed employment contracts. The last signed employment contract on file for these employees occurred between two and ten years ago. According to the Board of Regents Handbook, Title 2, Chapter 5, Section (a), employment contracts shall not exceed twelve months in length, except as approved by the Board. Section also states the contract shall not be binding until executed by both the appointee and the appointing authority. The renewal letters are not signed by the appointees. The process of issuing renewal letters has been in place at the university for approximately 20 years. The practice was initiated for efficiency purposes, as it was less (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 2 of 40

3 time consuming to issue letters of renewal as opposed to employment contracts. The UNR General Counsel s Office has considered the letters to be an acceptable method of renewing faculty employment. However, we were informed by HR Department personnel that they have recently developed the technological capability to mass produce employment contracts and that the department is considering going back to the prior practice in which terms of employment contracts were issued annually to all faculty. We recommend the HR Department continue to consider this change in procedure, which in our opinion, is in more direct compliance with Board policy. 2. On three occasions, the employment contract was not signed and/or dated by the employee. In the future, we recommend greater care be taken to ensure employment contracts are signed and dated, as required. 3. For seven employees, a Federal I-9 form was not on file. For six additional employees the I-9 form was either not completed in its entirety or the information was recorded in the incorrect field on the form. We recommend the missing I-9 forms be completed and placed in the university I-9 file maintained by the HR Department. We recommend the I-9 forms that were improperly completed be corrected. We also recommend that the university personnel who are responsible for completing I-9 forms be provided training as to how the forms should be completed. 4. On 13 occasions, a notarized oath form could not be located, as required by the UNR New Hire Checklist. On one occasion an oath form was located; however, it was not notarized. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 3 of 40

4 We recommend the oath forms be completed and placed in the employees personnel files. We recommend the oath form that was located be notarized. 5. An official transcript could not be located for three employees. We were informed that the employees had been contacted on one or more occasions and were requested to provide the transcripts; however, none were provided to the HR Department. According to the Board of Regents Handbook, Title 2, Chapter 5, Section , each institution shall independently verify academic credentials within 30 calendar days from the effective date of employment and develop a procedure to ensure that the verification takes place. It is further stated in the UNR Administrative Manual, Section 2590, that new faculty must have an official transcript of the highest degree received sent from the degree granting institution(s) to the HR Department within 30 calendar days from the effective dates of employment. We recommend the HR Department continue the practice of contacting and requesting transcripts from employees. To assist in this process, we recommend that the employing departments be notified of the requests to promote assistance and support in obtaining the transcripts. We were also informed by the HR Department that there are online services available that provide electronic degree verification. These services may alleviate the need to contact employees directly. We recommend the HR Department continue to research whether the use of such services would provide the information necessary to satisfy the requirements of the Board of Regents and the institutional degree policies. 6. An employment offer letter with signed acceptance was not on file for 51 of the academic, administrative and postdoctoral fellow employees reviewed. Of the 51 employees, only four were recent hires who were hired during the audit period. We were (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 4 of 40

5 informed that a more concerted effort has been made in the last year to obtain these documents. We recommend the HR Department continue its efforts to obtain offer letters with the signed acceptance for future new hires and that the letters be maintained in the employees personnel files. 7. On four occasions, a sexual harassment receipt form could not be located. According to the Board of Regents Handbook, Title 4, Chapter 8, Section 13 (C), all employees are required to be provided a copy of the NSHE Policy Against Sexual Harassment and Complaint Procedure and each institution's Human Resources Office is required to maintain documentation that each employee received the policy. We recommend the documents be completed and placed in each of the employee s personnel files. 8. During our review, we noted that the majority of the personnel files tested did not contain a workplace safety form and an alcohol and drug-free workplace form. We were informed that the hiring departments are responsible for collecting these forms, ensuring they are properly signed and maintaining them. Occasionally a hiring department will send a copy of the form to the HR Department and it is then placed in the employee s personnel file. We recommend these forms be maintained in the HR Department s employee personnel files. This will ensure all personnel forms for each employee are being properly completed and that employee personnel records are being maintained in the employee s official personnel file. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 5 of 40

6 9. During our review of the personnel files, we noted that none of them contained a NSHE Designation of Beneficiary of Unpaid Compensation form. We were informed by the HR Department that this form is currently not offered to the UNR employees. As a result, we noted that employees have not been informed of the opportunity to designate a beneficiary who would receive any unpaid compensation in the event of the employee's death. According to the NRS , the final payment of compensation due to a deceased employee of the State will be released to the designated beneficiary upon written request. If no beneficiary is named, the funds will be paid to the employee's estate. We recommend all employees be offered the opportunity to make such a designation on the NSHE Designation of Beneficiary of Unpaid Compensation form. We also recommend that the HR Department inform all employees at least annually, such as by e- mail, of the opportunity to name a beneficiary as provided in the NRS and request that the form be completed and returned to the HR Department. Academic Employees 1. A personal data form was not on file for two employees. We recommend the documents be obtained and included in the employees' personnel file. 2. A current evaluation was not on file for nine employees. In two of these instances, the most current evaluation was from In two other instances, the employees have not received a written evaluation since being hired in 2003 and We recommend the HR Department provide an annual list of delinquent employee evaluations to the Provost s Office for subsequent follow-up with the responsible employees. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 6 of 40

7 Administrative Employees 1. On one occasion, the Payroll Action Form (PAF) was not signed. The PAF provides five signature lines, including the position control/budget officer, supervisor, recommending authority, appointing authority and human resources representative. We recommend all PAF s be appropriately signed as evidence of review and verification of accuracy. If the PAF cannot be signed by all parties, we recommend the HR Department determine the minimum number of signatures needed on the form. The form should be reviewed by the HR Department for signature compliance. 2. On one occasion, an employment contract did not contain the correct ending date. We recommend greater care be taken in completing employment contracts. 3. On one occasion a resume could not be located. We recommend the document be obtained and placed in the employee's personnel file. Postdoctoral Fellows 1. Of the seven Postdoctoral Fellow files reviewed, an official PhD transcript could not be located for one employee. The personnel file contained a memorandum from the HR Department, addressed to the employee, requesting the transcript. In response, there was a letter to the file, from the degree granting institution, stating the employee s degree would be conferred in July 2007, five months after the employee began their appointment as a Postdoctoral Fellow. The Board of Regents Handbook, Title 4, Chapter 7, Section 6, states that completion of a doctoral degree in the appropriate discipline is required for a Postdoctoral Fellow appointment. It further states that the employing department is responsible for ensuring prospective appointees meet all eligibility requirements prior to the commencement of the appointment and that it is the employing department s (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 7 of 40

8 responsibility to obtain and forward an official transcript of the highest degree to the HR Department. We recommend the HR Department contact the appropriate department representative and request that the employee s transcript be provided. The transcript should then be maintained in the employee s personnel file. We also recommend that University personnel be reminded of the eligibility requirements for Postdoctoral Fellow appointments. Prospective appointees who do not meet all of the eligibility requirements should not be paid as Postdoctoral Fellows. Student Employees 1. On two occasions, the Eligibility and Application for Student Employment Form was not signed and dated by the department representative confirming the student met the minimum GPA requirement and was currently enrolled in at least six credits. In the future, we recommend the HR Department take greater care to ensure the Eligibility and Application for Student Employment Forms are signed, as required. RECHARGE As previously mentioned, the HR Department provides personal and professional growth workshops to university employees. This activity is recharged back to campus departments based on established rates. The Internal Audit Department reviewed the workshop recharge files maintained by the HR Department. For each workshop, we noted class rosters are not maintained in the files and that the sign-in sheets of actual attendees are also not being maintained. In addition, a reconciliation between the class roster, the sign-in sheet and the payments received is not being performed. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 8 of 40

9 For better record keeping procedures, we recommend the sign-in sheets be maintained and that the roster sheet be modified to include a column titled "Payment Received". For each workshop, we recommend the sign-in sheet be compared to the roster to verify that the number and name of participants are in agreement. If a discrepancy exists, we recommend the roster be updated. We recommend the invoice for each individual who attended the workshop and their payment documentation be attached to the roster and sign-in sheet and that the "Payment Received" column on the roster be marked for each individual whose payment was received. Once all payments have been accounted for, we recommend the roster, sign-in sheet, invoices and payments be attached and that the documentation be maintained in the appropriate workshop file. We noted the spreadsheet of payment received maintained by the HR Department does not contain a column to indicate the date the payments were deposited or the Cashier's Office receipt number. We also noted the date of the workshops corresponding to the payments received is not recorded in the class description column. We recommend the spreadsheet of payments received be modified to include a column in which each payment's deposit date and corresponding Cashier's Office receipt can be recorded. We also recommend the date of each workshop be included in the class description column. For 25 recharge deposits tested, we could not locate the Cashier's Office receipt for four of them. We recommend the Cashier's Office receipts be maintained for each deposit. GRANT-IN-AID We tested 21 individuals who received grant-in-aid during the Fall 2006 semester to determine whether there was a completed and properly approved Request for Grant-In-Aid form on file. We also verified the employees requesting grant-in-aid met the employment (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 9 of 40

10 requirements and, if applicable, that the dependents receiving the grant-in-aid did not exceed the age limit requirements. For grants-in-aid provided to dependents and spouses for graduate level courses, we reviewed the employees payroll history to determine whether the value of the tuition was included in their taxable income. The following exceptions were noted. 1. On one occasion a request for grant-in-aid form was not properly completed in that the appropriate certification statement on the form was not initialed by the employee. 2. On three occasions request for grant-in-aid forms were signed by the School of Medicine Fiscal Officer. The signature authority letter we obtained from the Fiscal Officer did not indicate he had been given authority to sign grant-in-aid forms. We recommend the HR Department take greater care to ensure that grant-in-aid forms are completed in their entirety before processing and that they are properly approved. Grant-In-Aid Form A review of the Request for Grant-in-Aid for Faculty form revealed the following areas in which the form could be improved. 1. In the Faculty Information section of the form, "Spouse/Dependent Child" is a selection for the employee when asked to indicate their faculty appointment status. "Spouse/Dependent Child" is not a faculty appointment status. The Internal Audit Department recommends the selection of "Spouse/Dependent Child" be removed as one of the choices of faculty appointment statuses on the form. 2. The form requests that employees and students provide their social security numbers. According to NRS 239B.030, a person shall not include and a governmental agency shall not require a person to include their social security number on any document that is (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 10 of 40

11 recorded, filed or otherwise submitted to a governmental agency on or after January 1, We recommend the grant-in-aid form be modified to request only employee and student identification numbers. 3. The "For Personnel Use Only" section on the form does not contain a space to document that the employment status indicated by the employee has been verified by the HR Department. We recommend the "For Personnel Use Only" section be changed so that the HR Department employee reviewing the form can properly document that the employment status has been verified. 4. The form only requires an approval signature from a dean or vice president if it is the faculty member taking the classes. According to the Board of Regent Handbook Title 4, Chapter 18, Section 5, the Grant-in-Aid Request form must be signed by the president or his designated representative for a faculty member receiving a grant-in-aid, but also their dependent or spouse. We recommend the grant-in-aid form require a signature approval from the president or his designated representative whether it is the faculty member or a dependent or spouse that is receiving the grant-in-aid. LEAVE RECORDS The Internal Audit Department reviewed the leave records of one professional and four classified HR employees to determine whether records were accurately completed and that proper record keeping procedures were followed. The following exceptions were noted. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 11 of 40

12 1. On one occasion, a sick leave request form was not submitted for approval within two days of returning to work. On eight occasions, annual leave request forms were submitted for approval after the leave was taken. According to the UNR Leave Request Form, the form must be completed in advance of leave except for illness, in which case the leave request must be completed and transmitted no later than two days after the employee returns to work. We recommend employees be reminded of the requirements for submitting leave request forms. 2. On one occasion, sick family death leave and on three occasions sick family leave was not recorded separately in the family sick leave column of the leave record. Due to the limits in the amount of leave that can be used in these situations, we recommend these types of leave be recorded in both the sick leave and the family sick leave columns of the leave record. 3. On one occasion, sick leave used, as documented on a leave request form, was not recorded on the leave record and was not deducted from the employee s accumulated sick leave balance. On three other occasions leave used, as documented on leave request forms was not recorded correctly on the leave record. We recommend greater care be taken to ensure that leave is properly recorded on the leave record and is deducted from the appropriate accumulated balance. We recommend the necessary corrections be made to the employees leave records. 4. On one occasion, annual leave was recorded on the leave record; however, a corresponding leave request form was not on file. In addition, the leave was not deducted from the employee s accumulated annual leave balance. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 12 of 40

13 We recommend the leave request form be properly maintained in the employee leave files. We recommend the necessary correction be made to the employee s leave records. 5. On two occasions, leave request forms were incorrectly completed in that the number of hours requested did not agree to the timeframes in which the leave was to be taken. We recommend supervisors take greater care to ensure the leave request forms are correctly completed. We recommend the necessary corrections be made to the employees leave records. 6. On three occasions, the number of annual leave hours accrued for employees was calculated incorrectly. On one other occasion, the number of sick leave hours accrued was calculated incorrectly. We recommend the leave calculations of these employees be reviewed and corrected. 7. On one occasion, two hours of overtime were recorded as two and half hours. We recommend supervisors take greater care to ensure overtime hours are reported correctly. 8. On five occasions, the overtime hours worked by employees and the corresponding amount of compensatory time earned was recorded in the incorrect month on the leave record. We recommend overtime hours be turned in at the end of each month and that the compensatory time earned be posted correctly to the leave record. 9. On eleven occasions, annual leave was used before compensatory time was exhausted. We recommend compensatory time be exhausted before annual leave is used, as required by NAC On thirteen occasions, the type of leave taken was coded incorrectly on the leave record. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 13 of 40

14 We recommend greater care be taken when leave is posted to the leave record. TUITION FEE WAIVERS According to information regarding the Tuition Fee Benefit Program for UNR Classified Employees, as provided on the HR website, eligible employees may receive a fee benefit for a maximum of six credits per semester and a maximum of 12 credits per fiscal year. However, according to the UNR Administrative Manual, classified employees of the university are only eligible for fee benefits for one three credit, job-related course per semester. Also, the Request for UNR Fee Benefit for Classified Employees form requests employees to provide their social security numbers. As previously mentioned, NRS 239B.030 states that a person shall not include and a governmental agency shall not require a person to include their social security number on any document that is recorded, filed or otherwise submitted to a governmental agency on or after January 1, The Internal Audit Department recommends the university make a determination as to the fee benefits classified employees are eligible for and that the necessary revisions be made to the policies on the HR website and/or the administrative manual. We also recommend the request for fee benefit form be changed so that only the employee identification number is requested. During our review of the fee waiver benefits for classified employees, we noted reimbursements were not received from three employees who did not meet the minimum grade requirements, as stated on the request for fee benefit form. One of these employees originally received an "incomplete" in a course and was later given a grade of "D+". Another employee was enrolled in a graduate level course and received a grade of "C". In the final instance, an employee received a "D-" in an undergraduate course. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 14 of 40

15 We recommend the employees noted above be contacted and that reimbursement of the fee waiver benefits provided to them be requested. We recommend the HR Department take greater care to ensure fee waiver reimbursements are received when the grade requirements are not satisfied. We recommend the HR Department track employees who receive an original grade of "incomplete" to determine whether their final grade requires reimbursement of the fee benefits. SEARCHES The Internal Audit Department noted that search committee members are not required to complete a confidentiality/non-disclosure statement prior to receiving access to applicant information. We also noted that the HR Department has not developed a list, to provide guidance to each search committee, of the documents that must be maintained in departmental search files. We recommend the HR Department create a confidentiality/non-disclosure form and that each member of a search committee be required to complete and sign the form before they are given access to applicant information. In lieu of the form, the department could create a confidentiality/non-disclosure statement in E-Search that each search committee member must accept before they are given access to the applicant information. If the HR Department selects to use a paper form, we recommend these forms be maintained in either the E-Search database or in the hiring departments search files. We also recommend that the HR Department create a search file checklist. The checklist should provide a list of documents that each search committee is required to maintain in the departmental search file. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 15 of 40

16 SENSITIVE EQUIPMENT As required by the NSHE sensitive equipment policy, equipment that is sensitive in nature or subject to theft, but which is valued between $500 and $1,999, must be maintained on a separate inventory list. We noted that such a list is being maintained by the department; however, the list does not contain the serial number, manufacturer and model number of each item. For a more complete sensitive equipment inventory list, we recommend the list be updated to include the information noted above for each item. CONTRACTS During a review of departmental expenditures, one occasion was noted in which an amendment to a service agreement was not signed by the original signatory, as required by NSHE contract policy. We recommend that modifications to a contract or agreement be signed by the original signatory. If the original signatory is not available, then the contract amendment may be signed by another person to whom such signature authority has been properly delegated. TELEPHONE We were informed that the monthly telephone bills are being reviewed; however, they are not dated and initialed as documentation of the review. The Internal Audit Department recommends that the telephone bills be dated and initialed after they are reviewed. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 16 of 40

17 TIMESHEETS During our review of the HR Department s student timesheets, two occasions were noted in which a student worked during class time. We recommend students be reminded not to work during class time, as required by the UNR Student Employment Handbook. We also recommend any reason for working and not attending class, such as when class is cancelled, be documented by the student on the timesheet. RECORDS The HR Department is required, under the State of Nevada s General Records Retention Schedule, to maintain the personnel records of terminated employees for 45 years from the end of the calendar year in which the terminations occur. Because of this requirement, there is a large volume of records that are maintained by the department. Currently, inactive personnel files are maintained in the basements of two university buildings and are being stored in cardboard boxes. We were informed that it is becoming increasingly difficult to find the storage space needed to keep these records. The general records retention schedule also recommends that the records be microfilmed six years after the termination date and that paper records be destroyed at this time. None of the records have been microfilmed or copied to another format. Our concern with this situation is that the records could not currently be replaced if there were a disaster and the records were destroyed. The HR Department has examined the possibility of acquiring a document imaging system that could be used to store both inactive and active records. We were notified, however, that the implementation of such a system is cost prohibitive at this time. We recommend the HR Department obtain written clarification from the State of Nevada Records Management Program whether microfilming of personnel files is necessary or whether (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 17 of 40

18 document imaging or other methods would be acceptable. Once this is determined, we recommend the HR Department begin the process of planning for and implementing a data storage system that will help to resolve the issue addressed above. PRIOR AUDIT REPORT A prior audit of UNR HR Department was conducted for the period of July 1, 1988 through December 31, All recommendations from that audit have been implemented, are no longer applicable, or have already been addressed in this report. OTHER The following was noted during our review of the HR Department; however, it is the responsibility of another university or system office department. FILE REVIEW During our review of employee benefit files, we noted 8 occasions in which a signed orientation receipt, acknowledging that the employees had received the required employment and benefits information, could not be located. On four occasions, a life insurance beneficiary designation form could not be located. We were informed that the employees had been contacted and were requested to provide the life insurance beneficiary designation form; however, none were provided to the Benefits Office. All of the forms listed above are required on the BCN Benefits File Checklist. In the future, we recommend benefits orientation receipts be included in each employee's benefits file at the time of hire. We recommend the missing life insurance beneficiary designation form be obtained and added to the employees benefits files. We recommend documentation of benefit form requests be maintained in the employees benefits files as well. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 18 of 40

19 EXPENDITURES During our review of expenditures, we noted an occasion in which an HR expense was paid with another department s purchasing card. Although an HR account was properly charged for the expense, the statement of account on which the expenditure was listed was not signed by an HR employee to indicate approval of the expense. We recommend greater care be taken by the Purchasing Card Office to ensure the statement of account contains an authorized signature for each account that is charged. STATEMENT OF REVENUES AND EXPENDITURES The following statement of revenues and expenditures is based on the activity of the department's two state and one self-supporting account during the audit period. The revenue and expenditure information was retrieved from the financial accounting system. The statement is provided for informational purposes only. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 19 of 40

20 Self State Supporting Funds Funds Total Balance July 1, 2005 $ 0 $ 1,285 $ 1,285 Revenues State Appropriations 704, ,931 Total 704, ,931 Expenditures Salaries 634, ,529 Travel 2, ,877 Operating 60,192 3,703 63,895 Fixed Assets 4, ,779 S&S Recharge 0 (3,270) (3,270) Total 702, ,809 Balance June 30, 2006 $ 2,555 2 $ 852 $ 3,407 Balance July 1, 2006 $ 0 $ 852 $ 852 Revenues State Appropriations 742, ,424 Total 742, ,424 Expenditures Salaries 645, ,063 Travel 2, ,960 Operating 50,704 2,598 53,302 S&S Recharge 0 (2,335) (2,335) Total 698, ,990 1 Balance March 31, 2007 $ 43,697 $ 589 $ 44,286 1 Includes encumbrances of $166, Remaining balance was transferred out at fiscal year end to pay other expenses in the 1101 fund. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 20 of 40

21 The Internal Audit Department appreciates the cooperation received from the Faculty Human Resources Department personnel during this review. Reno, Nevada September 5, 2007 Mary S. Stoltz Senior Internal Auditor Debbie L. Ottaviano Senior Internal Auditor Kitty Dame EDP Auditor Sandra K. Cardinal Assistant Vice Chancellor for Internal Audit and Risk Management (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 21 of 40

22 Business and Finance Reno, Nevada (775) Fax: (775) Memorandum To: From: Sandi Cardinal, Assistant Vice Chancellor for Internal Audit and Risk Management, NSHE Tom Judy Date: February 21, 2008 Subject: Audit of UNR Human Resources The purpose of this memorandum is to transmit responses from UNR Human Resources Department and from the Controller to the Audit of UNR Human Resources Department covering the period July 1, 2005 through March 31, I have reviewed and concur with all responses. Attachments c: Milton Glick, President Ron Zurek, Vice President Administration and Finance (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 22 of 40

23 (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 23 of 40

24 UNIVERSITY OF NEVADA, RENO HUMAN RESOURCES Response to Internal Audit Report July 1, 2005 through March 31, 2007 FILE REVIEW Recommendation # 1: The process of issuing renewal letters has been in place at the University for approximately 20 years. The practice was initiated for efficiency purposes, as it was less time consuming to issue letters of renewal as opposed to employment contracts. The UNR General Counsel s Office has considered the letters to be an acceptable method of renewing faculty employment. However, we were informed by HR Department personnel that they have recently developed the technological capability to mass produce employment contracts and that the department is considering going back to the prior practice in which terms of employment contracts were issued annually to all faculty. We recommend the HR Department continue to consider this change in procedure, which in our opinion, is in more direct compliance with Board policy. a): Correction: In June of 2007, Human Resources developed the technical capability to mass produce Terms of Employment (contract) for renewable faculty. The form was approved by legal counsel in October 2007 for use during the 2008 faculty contract renewal process. b): Prevention and Monitoring: In 2008, a Terms of Employment will be issued to all eligible faculty and circulated for signature to the employee via the designated appointing authority. The employee and the appointing authority will be required to sign the Terms of Employment and return to Human Resources for processing prior to the first fiscal year payroll in July. Recommendation # 2: In the future, we recommend greater care be taken to ensure employment contracts are signed and dated as required. a): Prevention and Monitoring: Employment documents are reviewed by the HR processors and reviewed again as it is filed in the employee s personnel file. All HR employees responsible for processing these employment contracts were retrained in January An electronic HR procedure manual was developed to be used as a training guide and for reference when processing documents. Terms of Employment need to be completed in full or the employee will not be processed for pay until it is complete. HR will continue to provide on-going campus training sessions on how to complete required forms. Recommendation # 3: We recommend the missing I-9 forms be completed and placed in the University I-9 file maintained by the HR Department. We recommend the I-9 forms that were improperly completed be corrected. We also recommend that the University personnel who are responsible for completing I-9 forms be provided training as to how the forms should be completed. a): Correction: New I-9 forms were requested on November 28, 2007 for missing and incorrect forms. One of the employees for which the I-9 was missing has separated from the University, but as of February 4, 2008 all of the other missing I-9 forms have been received. An external I-9 expert was (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 24 of 40

25 contracted to host a campus wide training on December 3, 2007 on how to complete an I-9 correctly. The workshop was available to the entire campus and was offered through Professional Development & Training. A personal invitation to attend the training was sent via to department representatives responsible for completing the I-9 form, and there were over 60 people in attendance. b): Prevention and Monitoring: In February 2008, HR developed an I-9 Compliance Program based on best practices recommended by an outside consultant. The program includes internal and external written I-9 procedures, training, and internal auditing procedures. In September 2008, an internal audit of all I-9 s on file for active employees will be conducted to ensure the accuracy of all I- 9 forms on file. Instructions for completing the I-9 are now available on the HR website, and HR will continue to develop the training resources available to UNR employees online on the HR liaison website. HR processors will review all I-9 forms and refer any questionable documents to the Lead Processor or the HRMS Manager. Current procedures require the I-9 form be completed as part of the new employee hiring packet and submitted to HR or the employee will not be processed for pay until it is received. Departments are expected to complete a new hire checklist to ensure all the necessary hiring documents are completed before forwarding to HR for processing. HR developed an electronic HR procedure manual to be used as a training and reference guide when processing documents. HR hosts year round training sessions on how to complete hiring documents correctly. Recommendation # 4: We recommend the oath forms be completed and placed in the employees personnel files. We recommend the oath form that was located be notarized. a): Correction: Of the 13 missing oaths five of these employees have separated from the University and the remaining 8 missing oaths were received as of December 15, b): Prevention and Monitoring: HR has always required oaths be completed for faculty, but did not require oaths be completed for letter of appointment employees until September Current procedures require a notarized oath be completed as part of the new employee hiring packet and submitted to HR or the employee will not be processed for pay until it is received. Departments complete a new hire checklist to ensure necessary hiring documents are completed before forwarding to HR for processing. HR developed an electronic HR procedure manual to be used as a training and reference guide when processing documents. HR hosts year round training sessions on how to complete hiring documents correctly. Recommendation # 5: We recommend the HR Department continue the practice of contacting and requesting transcripts from employees. To assist in this process, we recommend that the employing departments be notified of the requests to promote assistance and support in obtaining the transcripts. We were also informed by the HR Department that there are online services available that provide electronic degree verification. These services may alleviate the need to contact employees directly. We recommend the HR Department continue to research whether the use of such services would provide the information necessary to satisfy the requirements of the Board of Regents and the institutional degree policies. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 25 of 40

26 a): Correction: Of the three files missing academic credentials two were verified via the National Student Clearinghouse on February 14, 2008 and the third verification is still in progress. a): Prevention and Monitoring: HR obtained access to National Student Clearinghouse in December This is a national database of student degree information from participating institutions. HR processors can verify academic credentials online if the employee completed their degree in the United States and the institution participates in the Clearinghouse. The degree verification is printed and included in the personnel file. If the individual is from a foreign country or a school that does not participate, transcripts will still be required and HR processors will follow the process below that was effective February 11, The Personnel Analyst II is responsible for follow up, however either of the Personnel Technicians can perform this function if needed. The monthly report is maintained in a shared location. UNR HR Transcript Verification Process For A & B contracts, Postdocs Responsible Party 1. Employee is notified of transcript requirement in offer letter. Dean s office or search committee 2. If transcript is not received with new hire paperwork, an is sent to the HR employee and the dean s office administrator is copied. 3. On approximately the 20 th of each month, a monthly report of transcripts not HR received is prepared and sent to Gena Jones, AVP HR. This report will be used to generate reminder memos. Deans and dean s office administrators are copied on reminder memos. 4. Written or oral follow up before 30 th of each month. Dean or Dean s office administrator 5. #s 3 & 4 are repeated until 90 days have elapsed at which time action is taken per HR or Dean s Office the direction of the president. 6. When transcript is received, it is entered in HRS and an is sent to the employee and the dean s office administrator is copied. HR Recommendation # 6: We recommend the HR Department continue its efforts to obtain offer letters with the signed acceptance and that the letters be maintained in the employee personnel files. a): Prevention and Monitoring: Effective January 18, 2007 HR published templates for offer letters for the campus to utilize. Prior to the last two to three years offer letters were not required. Offer letters were completed only to document unusual arrangements. Most of the files with missing offer letters were for hires prior to the requirement of issuing formal offer letters. On January 22, 2007 a campus wide offer letter training was held to inform the campus of the new procedures. Offer letters are required to be submitted to HR as part of a new employee hiring packet. The employee will not be processed for pay until the offer letter is received. Departments are expected to complete a new hire checklist to ensure that the necessary hiring documents are completed before forwarding to HR for processing. HR developed an electronic HR procedure manual to be utilized as a training and reference guide when processing documents. HR hosts year round training sessions on how to complete hiring documents correctly. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 26 of 40

27 Recommendation # 7: We recommend the documents be completed and placed in each of the employee s personnel files. a): Correction: Of the four missing sexual harassment receipts three employees have since terminated employment, and one employee s form was misfiled. The misfiled form was located and placed in the correct file. b): Prevention and Monitoring: Current procedures require sexual harassment receipts be completed as part of a new employee hiring packet, and submitted to HR or the employee will not be processed for pay until it is received. Departments are expected to complete a new hire checklist to ensure all the necessary hiring documents are completed before forwarding to HR for processing. HR developed an electronic HR procedure manual to be utilized as a training and reference guide when processing documents. HR hosts year round training sessions on how to complete hiring documents correctly. Recommendation # 8: We recommend these forms be maintained in the HR Department s employee personnel files. This will ensure that all personnel forms for each employee are being properly completed and that employee personnel records are being maintained in the employee s official personnel file a): Correction, Prevention and Monitoring: Nevada Workplace Safety and the Alcohol and Drug- Free Workplace forms were not required by HR prior to June Current procedures require these forms be completed as part of the new employee hiring packet and submitted to HR or the employee will not be processed for pay until they are received. Departments are expected to complete new hire checklist to ensure necessary hiring documents are completed before forwarding to HR for processing. HR developed an electronic HR procedure manual to be utilized as a training and reference guide when processing documents. HR hosts year round training sessions on how to complete hiring documents correctly. Recommendation # 9: We recommend all employees be offered the opportunity to make such a designation on the NSHE Designation of Beneficiary of Unpaid Compensation form. We also recommend that HR Department inform all employees at least annually, such as by , of the opportunity to name a beneficiary as provided in the NRS and request that the form be completed and returned to the HR Department. a): Correction: In February of 2008, the NSHE Designation of Beneficiary of Unpaid Compensation form was made available to all faculty members. A notice of the form availability was posted on the HR website on February 20, The form will reside on the HR website to be accessible to all employees. b): Prevention and Monitoring: A campus wide communication will be sent on an annual basis to remind all employees to update the NSHE Designation of Beneficiary of Unpaid Compensation form. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 27 of 40

28 Academic Employees Recommendation # 1: We recommend the documents be obtained and included in the employees' personnel file. a): Correction: An was sent to the Dean of the College of Engineering on December 1, 2007 along with a scanned copy of the Personal Data Form, requesting each employee involved complete a form. The two missing forms were received on December 4, 2007 and December 5, b): Prevention and Monitoring: Employees with missing Personal Data Forms in question were hired in the 1980 s. Current procedures, unlike past requirements, require Personal Data Forms be completed as part of the new employee hiring packet and submitted to HR or the employee will not be processed for pay until received. Departments are expected to complete a new hire checklist to ensure all the necessary hiring documents are completed before forwarding to HR for processing. HR developed an electronic HR procedure manual to be used as a training and reference guide when processing documents. HR hosts year round training sessions on how to complete hiring document correctly. Recommendation # 2: We recommend the HR Department provide an annual list of delinquent employee evaluations to the Provost s Office for subsequent follow-up with the responsible employees. a): Correction: In August 2007, a list of delinquent employee evaluations was sent to the Provost Office for subsequent follow-up with responsible employees. b): Prevention and Monitoring: Human Resources, the Provost Office, and the Planning, Budget and Analysis Office will utilize the same list to collect merit ratings and receipt of evaluations. HR will forward a list of evaluations not received to the Provost Office in June of each year for subsequent follow-up with responsible employees. Administrative Employees Recommendation # 1: We recommend all PAF s be appropriately signed as evidence of review and verification of accuracy. If the PAF cannot be signed by all parties, we recommend the HR Department determine the minimum number of signatures needed on the form. The form should be reviewed by the HR Department for signature compliance. Response a): Correction: The PAF was scanned and ed to the department on November 29, The signed copy was received in HR on December 4, b): Prevention and Monitoring: All hiring documents are required to be completed in full or the employee will not be processed for pay until it is complete. HR processors will ensure that PAF s are appropriately signed and dated as required. HR employees responsible for processing these documents were retrained on January 11, A procedure for verifying a PAF is signed correctly will be established in the electronic HR procedure manual for training and reference purposes. HR hosts year (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 28 of 40

29 round campus trainings on how to correctly complete HR documents and the signature procedures will be made available to the campus community on the HR website. Recommendation # 2: We recommend greater care be taken in completing employment contracts. a): Correction: The contract end date was corrected. b): Prevention and Monitoring: HR processors will ensure that upon receipt in HR all employment contracts are reviewed for accuracy. All HR employees responsible for processing these documents have been retrained, and an electronic HR procedure manual has been developed to be used as a training and reference guide when processing documents. HR hosts year round campus trainings on how to complete forms required for new hires. Recommendation # 3: We recommend the document be obtained and placed in the employee's personnel file. a): Correction: The one missing resume requested in October 2007 was received in the HR department on December 10, It has been placed in the personnel file. b): Prevention and Monitoring: Current procedures require resumes to be included in the new employee hiring packet or the employee will not be processed for pay until received. Resumes are now collected and maintained during the search process via e-search and therefore, can now be obtained through e-search if it is not received with the new hire packet. Postdoctoral Fellows Recommendation # 1: We recommend the HR Department contact the appropriate department representative and request that the employee s transcript be provided. The transcript should then be maintained in the employee s personnel file. We also recommend that University personnel be reminded of the eligibility requirements for Postdoctoral Fellow appointments. Prospective appointees who do not meet all of the eligibility requirements should not be paid as Postdoctoral Fellows. a): Correction: The missing transcript was for an employee that completed his degree in England. HR received written verification from the Registrar s Office of the university that the degree of Doctor of Philosophy is a research degree and is awarded solely on the basis of a research thesis, and as such, it is not possible to produce an academic transcript for this degree. On February 4, 2008 HR requested a certified copy of his diploma be sent directly to the HR department. b): Prevention and Monitoring: A letter stating the degree has been completed, in place of a transcript, will not be accepted in the future. HR received access to National Student Clearinghouse in December This is a national database of student degree information from participating institutions. HR processors can verify academic credentials online if the employee completed their degree in the United States and the institution participates in the Clearinghouse. The degree verification is printed and included in the personnel file. If the employee completed the degree outside the United States transcripts will be required and HR processors will follow the process listed under file review section recommendation number five. (AUDIT COMMITTEE 04/03/08) Ref. A-3, Page 29 of 40