UNIVERSITY OF NEVADA, RENO GRADUATE SCHOOL HUMAN RESOURCES Internal Audit Report January 1, 2011 through March 31, 2012
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1 UNIVERSITY OF NEVADA, RENO GRADUATE SCHOOL HUMAN RESOURCES Internal Audit Report January 1, 2011 through March 31, 2012 GENERAL OVERVIEW The University of Nevada, Reno (UNR) Graduate School Human Resources function provides personnel services for the university s graduate assistant positions. These services include the review and maintenance of personnel documents and providing assistance to the hiring departments, as needed. Through 2010, this function was performed by an employee within the UNR Graduate School. The position has since been moved and is now included in the UNR Human Resources Department. The Graduate School is responsible for approving the hiring of graduate assistants and the overall administration of the program. Graduate assistant positions are filled by UNR students. To be eligible for an assistantship, students must be admitted to a degree granting program, in good academic standing and enrolled in at least six graduate level credits with an overall GPA of 3.0. Graduate assistants perform a variety of duties related to teaching courses, grading papers and conducting research in laboratories. The type of work performed depends on whether students are hired as a Graduate Teaching Assistant or a Graduate Research Assistant. Graduate assistants are considered Nevada residents for residency purposes, receive a Grant-in-Aid (GIA) for a portion of their registration fees and are eligible for health insurance. The university employs approximately 1,200 graduate assistants each year. SCOPE OF AUDIT The Internal Audit Department has completed a review of the UNR Graduate School Human Resources function for the period of January 1, 2011 through March 31, (AUDIT COMMITTEE 08/30/13) Ref. A-2c, Page 1 of 10
2 The scope of our review included tests of the employment documentation and other auditing procedures as we considered necessary. The tests included, but were not necessarily limited to, these areas. 1. Reviewing employment documentation for proper completion and adherence to established policies. 2. Determining whether graduate assistants received the correct amount of Grant-in-Aid. 3. Determining whether graduate assistants met the minimum grade point average and were enrolled in the proper number of credits. 4. Reviewing the requirements for Graduate Teaching Assistants and testing for compliance. In our opinion, we can be reasonably assured that the UNR Graduate School Human Resources function is operating in a satisfactory manner. However, implementation of the following recommendations would further improve the controls over this area. FILE REVIEW A sample of 40 graduate assistants was reviewed to determine whether required employment documentation, as provided on the graduate assistant new hire checklist, was completed. A total of 92 employment contracts were generated by the employees during the audit period. The following exceptions were noted. 1. For three employees, the Employment Eligibility Verification (I-9) form was not completed by the third business day following the start of their employment, as required. For one other employee, an expired document was noted in the Employer Review and Verification section of the I-9 form. We recommend I-9 forms be completed and updated, as required. (AUDIT COMMITTEE 08/30/13) Ref. A-2c, Page 2 of 10
3 Institution Response Correction: The departments have been reminded to complete an I-9 within three working days of a new employee s start date. One of the I-9 s identified had an error on the start date on the I-9 form. The I-9 has been corrected. The employee responsible for Graduate Assistant I-9 s was retrained on the process of re-verification for expired documents. Prevention and Monitoring: All I-9 s are reviewed for compliance on receipt and departments are notified of errors and/or needed corrections. All staff have been retrained on the I-9 review process. I-9 training and reminders have reinforced with campus and staff the importance of completing I-9 s within three business days of the employee s start date. Follow Up Response: No changes, the corrective action was implemented as presented in the original response. 2. For 52 employment agreements, the Grant-in-Aid (GIA) Provisions section was not completed. On five other occasions, the GIA Provisions section was not completed in its entirety or was completed incorrectly. This section of the employment agreement provides information on whether employees are receiving a GIA and if so, the account from which the GIA will be funded. 3. For six employment agreements reviewed, the Remarks section did not indicate that the addendum form for additional health insurance was included as part of the employment agreement. For seven other employment agreements, the Remarks section included the appropriate language, however, the addendum forms were not signed by the recommending authority. 4. For two employment agreements, the Ending Contract Date was incorrect. 5. A GIA form completed for one of the Graduate Assistants tested was not signed by the required university representative. For items two through five, we recommend the UNR Human Resources Department take greater care to ensure employment agreements, GIA forms, insurance addendum forms and other related documents are properly completed and signed. If errors or omissions (AUDIT COMMITTEE 08/30/13) Ref. A-2c, Page 3 of 10
4 are noted, we recommend the documents be returned to the appropriate department for correction. Institution Response Correction: We agree with the recommendation and have evaluated and revised procedures to streamline the process. A signature has been obtained on the GIA form not signed by the university representative (on October 17, 2012) and the department has been reminded of the requirement. Prevention and Monitoring: The Personnel Technician I is responsible for reviewing and checking to ensure all of the documents are properly completed and signed. Documents that require signatures are returned to departments for completion. Follow Up Response: The corrective action was implemented as presented in the original response. Additionally, the employment agreement has been amended to remove Grant-in- Aid (GIA) Provisions section that is no longer used. GRADUATE TEACHING ASSISTANTS According to university policy, individuals in Graduate Teaching Assistant (GTA) positions are required to complete a prerequisite teaching course before they begin work. A sample of 23 GTA positions was selected to determine compliance with this requirement. We noted six of the 23 reviewed had not completed the course. Of the six, we were informed by the UNR Human Resources Department that three were exempt from taking the course because they were hired by departments that conduct their own instructional training programs. This exception to the policy is not documented. We recommend the UNR Human Resources Department and the hiring departments ensure the prerequisite teaching course is completed before GTAs begin work. We also recommend university policy be updated to include the occasions in which the course is not required to be taken. (AUDIT COMMITTEE 08/30/13) Ref. A-2c, Page 4 of 10
5 Institution Response Correction: Two of the three registered for and completed Grad 701 the Fall 2012 semester. The third was no longer employed as a Graduate Assistant the Fall 2012 semester. Departments have been reminded that all GTA s must attend or be registered for Grad 701 to submit hiring paperwork. The University Administrative Manual and the Graduate Assistantship Handbook have been updated to reflect which programs conduct an approved Grad 701 substitution program. Prevention and Monitoring: The New Hire Checklist for Graduate Assistants has been modified to identify the criteria that must be met for Graduate Assistants at the top of the form. Documents are returned to the department for GTA s that are not registered for or have not taken Grad 701. Follow Up Response: No changes, the corrective action was implemented as presented in the original response. Documents are being returned to departments when GTA s are not registered for or have not taken Grad 701. INTERNATIONAL GRADUATE TEACHING ASSISTANTS According to university policy, international students serving as GTAs must meet a minimum score on the Test of English as a Foreign Language (TOEFL) and pass a speaking test before they are allowed to teach. We selected a sample of ten international GTAs to determine whether the testing requirements were met. The following exceptions were noted. 1. Testing information was not on file for three GTAs. According to the UNR Human Resources Department, two of these individuals were exempt from the testing requirements because their undergraduate degrees were earned from institutions in the United States. We were informed the third individual was also exempt because English was their native language. These exceptions to the policy are not documented. We recommend university policy be updated to include the testing exceptions noted above. (AUDIT COMMITTEE 08/30/13) Ref. A-2c, Page 5 of 10
6 Institution Response Correction: Amendments have been drafted to the University Administrative Manual and the Graduate Assistantship Handbook that notes exceptions to the testing policy for international students that have received an undergraduate degree from a U.S. institution or are originating from an English-speaking country that is exempt from the English language test requirements. Prevention and Monitoring: Policies related to teaching assistantships are reviewed by the Human Resources department and the Graduate School on an annual basis for any potential changes to policy. Follow Up Response: The amendments have been published in the University Administrative Manual and the Graduate Assistantship Handbook. Policies will be reviewed annually and updated as needed. 2. One GTA did not complete the required speaking test. We recommend the individual be requested to take the test. In the future, we recommend the required tests be taken before international GTAs are employed. Institution Response Correction: The individual missing the Speak Test is no longer a Teaching Assistant. Should this student return to a Teaching Assistantship, they will be required to take the Speak Test. Prevention and Monitoring: The Personnel Technician I verifies that the Speak Test or an approved substitution has been completed with a satisfactory score. The New Hire Checklist for Graduate Assistants has been modified to identify the criteria that must be met for Graduate Assistants at the top of the form. Follow Up Response: No changes, the corrective action was implemented as presented in the original response. 3. Three GTAs did not achieve the required minimum score on the TOEFL. 4. One GTA did not achieve the required TOEFL score but was granted an exception by the Graduate School for one semester. As a condition of the exception the individual was required to retake the TOEFL and obtain the required score to retain the assistantship. (AUDIT COMMITTEE 08/30/13) Ref. A-2c, Page 6 of 10
7 We noted the test was not retaken and the individual was subsequently reemployed as a GTA. For items three and four, we recommend the individuals be requested to retake the tests. In the future, we recommend the required test scores be achieved before international GTAs are employed. Institution Response Correction: One individual that did not meet the minimum score on the TOEFL speaking section is no longer a Teaching Assistant. One of the three GTA s that did not meet the minimum TOEFL score took a computer based version of the TOEFL. This is an approved substitution and the student met the minimum score for that test. The third that scored below minimum on the TOEFL speaking section took the Speak Test and passed that test which is a substitution permitted by policy. The GTA that was granted an exception with the requirement to test to retain the assistantship completed the Speak Test with a satisfactory score and was granted an exception, documented by memo, for another semester on August 9, 2012 to complete the TOEFL at the required level. Prevention and Monitoring: The New Hire Checklist for Graduate Assistants has been modified to identify the criteria that must be met for Graduate Assistants at the top of the form. Departments have been informed that Teaching Assistants that have not met the TOEFL and Speak Test requirements will not be teaching. The student will need to be moved to a Research Assistantship or placed in a restricted GTA role that involves no direct teaching of course content. Policy has been drafted to update the University Administrative Manual, the Graduate Assistantship Handbook and the HR website to more clearly communicate the requirements and allowable substitutions. Follow Up Response: The amendments have been published in the University Administrative Manual and the Graduate Assistantship Handbook. Students that do not meet the TOEFL and Speak Test requirements are moved to other appointment types that do not involve teaching. GRANT-IN-AID Graduate assistants are eligible to receive a GIA that pays for a portion of their registration fees. The amount of GIA that is received depends on the type of assistantship. For (AUDIT COMMITTEE 08/30/13) Ref. A-2c, Page 7 of 10
8 instance, a 20 hour a week assistantship receives a higher amount of GIA than a 15 or 10 hour a week assistantship. We reviewed the GIA that was issued to 40 graduate assistants to determine whether they received the proper amount of GIA. We noted three of the 40 graduate assistants reviewed did not receive a GIA. Although Board of Regents policy states GIA may be paid to graduate assistants, university policies are more definitive in stating that GIA is paid to these individuals. We recommend the university s policies regarding this matter be updated to coincide with Board of Regents policy and the current practice that is followed at the institution. Institution Response Correction: The University Administrative Policy has been updated to read, GIA may be paid to graduate assistants and is customary except in those cases where a grant funding the position does not allow for tuition. This language has also been updated on the Human Resources website and in the Graduate Assistantship Handbook. Prevention and Monitoring: Policies related to grant-in-aid are reviewed by Human Resources on an annual basis for any potential changes to policy. Follow Up Response: The amendments have been published in the University Administrative Manual, Graduate Assistantship Handbook and on the Human Resources website. Policies will be reviewed annually and updated as needed. (AUDIT COMMITTEE 08/30/13) Ref. A-2c, Page 8 of 10
9 The Internal Audit Department appreciates the cooperation and assistance received from the UNR Human Resources staff during this review. Reno, Nevada October 18, 2012 Eric Wilber Internal Auditor II Scott Anderson Internal Audit Manager Sandra K. Cardinal Assistant Vice Chancellor for Internal Audit (AUDIT COMMITTEE 08/30/13) Ref. A-2c, Page 9 of 10
10 Business and Finance University of Nevada, Reno/1124 Reno, Nevada Telephone: (775) Fax: (775) Memorandum To: From: Sandi Cardinal, Assistant Vice Chancellor for Internal Audit and Risk Management, Nevada System of Higher Education Tom Judy Date: July 26, 2013 Subject: Follow-up responses for UNR Graduate School Human Resources The purpose of this memorandum is to transmit the follow-up response from the University of Nevada Reno Human Resources to the audit of the Graduate School Human Resources covering the period January 1, 2011 through March 31, I have reviewed and concur with all responses. cc: Marc Johnson, President Ron Zurek, Vice President, Administration and Finance Tim McFarling, Asst. VP Human Resources (AUDIT COMMITTEE 08/30/13) Ref. A-2c, Page 10 of 10
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