Voluntary Severance Process (IA /F) Tricia Riley, Director of Human Resources. Audit Conclusion: Audit Closed

Transcription

1 FINAL INTERNAL AUDIT REPORT Voluntary Severance Process (IA /F) Tricia Riley, Director of Human Resources Audit Conclusion: Audit Closed 5 August 2013 Issue categories Agreed actions Satisfactorily addressed Partially addressed No longer applicable Not addressed Priority Priority Priority TfL RESTRICTED

2 Contents EXECUTIVE SUMMARY... 3 STATUS OF AGREED ACTIONS... 4 APPENDIX 1 DISTRIBUTION LIST... 9 TfL RESTRICTED Page 2

3 EXECUTIVE SUMMARY Objective The objective of the audit was to review the adequacy and effectiveness of the controls over the Voluntary Severance (VS) process. Scope The audit focused on the control environment in relation to the following key risk areas: Policies and procedures including the VS lifecycle Roles and responsibilities Data collection and validation for VS quotations Calculation of benefits including adjustments for outstanding annual leave entitlements and retention of travel facilities Approval of VS packages including production and review of compromise agreements VS completion Staff returning to employment with TfL after taking VS. The audit did not review Payroll Services role in VS as this was examined during the 2011/12 audit Payroll issued 22 December Summary of findings Our Interim Audit Report d 8 February 2013 entitled Voluntary Severance Process identified the following Priority 1 issue: VS policies do not define a time limit on the validity of a VS offer made to employees. This resulted in two management actions. Three Priority 2 and two Priority 3 issues were also raised, resulting in a further 11 actions. We have now completed a follow up audit of the agreed management actions. All the Priority 1 actions and 10 of the further actions have been satisfactorily addressed. The remaining action which has been partially addressed is reliant on an external provider completing work. We are satisfied that completion of this work is being progressed and monitored by HR in liaison with IM. Accordingly, this audit is now closed. TfL RESTRICTED Page 3

4 STATUS OF AGREED ACTIONS Priority 1 actions and due 1. The guidance for Line Managers and HR around Suitable Alternative Employment (SAE) will be reviewed. Heads of HR will brief Directors on SAE to ensure that where employees are undertaking roles which are similar to vacancies, SAE is compulsory to reduce the number of employees awaiting VS payments and retain skills within the organisation. Monica Carroll / Rebecca Shah 31/03/2013 Extended to 30/06/2013 SAE process guidelines have been reviewed and workshops delivered across Recruitment to ensure a consistent approach to clearing house activity. Directors have been briefed on SAE. All extensions to transitional roles must be signed off by the Director of HR. 2. The Redeployment Team and HRBPs will monitor staff that are displaced or working notice following organisational change and report these to senior management for action. Monica Carroll / Rebecca Shah 31/03/2013 Monitoring reports are produced on a periodic basis and forwarded to the Head of HR Delivery Support Services to be cascaded for management action. TfL RESTRICTED Page 4

5 Priority 2 actions and due 3. The Redeployment Team will create work instructions for VS process. 31/03/2013 Work instructions have been created for Voluntary Severance Quote Calculations. 4. A One HR process mapping workshop was held in December 2012 to define roles and responsibilities and activity level. This has been signed off by the Leadership Team. Monica Carroll Completed 5. A VS E-form will be developed. 30/06/2013 Roles and responsibilities have been defined and approved by the HR Leadership Team. Partially addressed The Redeployment Team have been working with the HR Process and Improvement Team to develop the VS E-form. Liaison has been ongoing with IM and Axon who will deliver the proposed E-form. TfL is currently awaiting details of the proposed build and a quote for the work. The proposed build and quote is expected from Axon by the 31 August On approval the technical development and implementation of the E-form will commence and the final delivery agreed. TfL RESTRICTED Page 5

6 and due 6. The Redeployment Team will produce and agree KPIs with the business. 7. The Redeployment Team will create a process to capture changes made to VS information. 26/4/2013 Extended to 30/06/ /4/2013 The Service Level Agreement (SLA) for individual quotes will be two days and ten days where the quote is routed through TfL Pensions. In the majority of circumstances where employees are to be displaced as part of a restructuring programme, the Redeployment Consultant will liaise with the Recruitment Consultant to agree a SLA. For larger projects this may also result in the Redeployment Team acquiring extra resource. Restructuring programmes involving over 100 employees will be classed as project specific. The VS e-form will capture changes made to VS information which will be TfL RESTRICTED Page 6

7 Priority 3 actions recorded on SAP EiC. and due 8. A buddy check process will be introduced in the Redeployment Team and training provided to the Team. This will include identifying where to record the check once it has been completed. 9. With reference to the anomaly identified by the audit, Staff Travel will investigate whether the individual concerned was eligible to retain their travel passes. 31/3/2013 Elaine Horwood Completed A buddy check process has been developed and rolled out to the team. Buddy checks are documented as sense checks in the VS work instructions which include details for recording the check once completed. An investigation was undertaken which confirmed the individual was not eligible to retain their Oyster card. 10. Following the outcome of the investigation, a letter will be sent to the individual informing them of the error. 11. The passes will be cancelled on the system. Elaine Horwood Completed A letter was sent to the individual. Elaine Horwood TfL RESTRICTED Page 7

8 08/02/13 The pass has been cancelled. and due 12. The member of staff who processed the original passes will receive refresher training on Retired pass issuing. 13. The work instructions will be reviewed to include eligibility checks. Elaine Horwood 08/02/13 Elaine Horwood 22/02/13 The staff member has received refresher training. The work instructions have been reviewed. TfL RESTRICTED Page 8

9 APPENDIX 1 Distribution list This report was sent to Tricia Riley, Director of Human Resources, by Clive Walker, Director of Internal Audit, and copied to: Kim Travers Claire O Neill Monica Carroll Natalie Wilkinson Gareth Taylor Rebecca Shah Caroline Kelly Nigel Blore Andrea Clarke David Goldstone Howard Carter David Brent Head of HR Service Delivery Head of Customer Delivery Customer Delivery Manager Redeployment Manager HR Services Team Manager Acting Recruitment Delivery Manager Head of HR Delivery Support Services as Key Risk Representative Head of Group Insurance Director of TfL Legal Chief Finance Officer General Counsel KPMG TfL RESTRICTED Page 9