AUSTIN INDEPENDENT SCHOOL DISTRICT INTERNAL AUDIT DEPARTMENT HUMAN RESOURCE AUDIT PROGRAM

Transcription

1 GENERAL: The Human Resources (HR) Department deals with the management of people within the organization. This includes responsibility for the process of hiring staff, recruiting and advertising positions while ensuring compliance with Federal and State laws and regulation. As well as maintaining all required personnel documentation, evaluations and disciplinary actions. AUDIT OBJECTIVES: 1) To review HR policies, procedures and practices for effectiveness; 2) To ensure the District is in compliance with Federal, State, Local and District policies, procedures and Laws; 3) Determine who has access to HR records, who has the ability to add delete, modify, etc., payroll or HR records; 4) Test security features in HR functions; 5) That staffing procedures provide qualified staff in a timely manner to ensure continuity of operations; 6) District policies and procedures are consistently applied to all employees; 7) Salaries and benefits are competitive to attract and retain quality employees. AUDIT PROCEDURES: 1) General a) Obtain: 1. Policies and Procedures 2. Prior Audit Reports 3. External Auditor Management Records 4. Regulatory Examination Reports 5. Job Descriptions and Organizational Chart Page 1

2 6. Related Information of Laws and Regulations 7. Copies of all forms used in the HR function b) Review policies and procedures to determine adequacy. c) Review prior reports to determine whether corrective action has been implemented for noted deficiencies. d) Review job descriptions of HR employees. 2) Document Flow a) Trace the flow of documents through the hiring process b) The process of adding new hires to the payroll system. 3) Review forms used by HR to determine adequacy and effectiveness. 4) Determine if the following information exists and is being utilized: a) Overall Performance b) Employee turnover ratio c) Absenteeism d) Rate of employees requests for transfers and number per location e) Number of grievances per department f) Safety and accident rates g) Other Key Performance Indicators (KPI) 5) Planning a) Determine how the HR Department identifies and monitors the number and Page 2

3 type of personnel necessary to meet the District's needs. Obtain copies of any planning or forecasting documents used and evaluate for adequacy. b) Review actual results as compared to manpower plan and determine if there are significant variances. c) Turnover in key positions can affect the operations and efficiency of the District. Calculate employee turnover percentages by department or campus. Schedule for further investigation any areas which have experienced unusually high turnover. 6) Recruitment and Staffing a) Document the process for recruiting and staffing positions. Determine how vacancies are identified, publicized, and filled. Ensure the turnaround time for filling vacancies is reasonable. b) Review the Position Control system. Is the system adequate to ensure that only approved positions are filled? Does the system fulfill the District's needs with respect to controlling employment and vacancies? c) Assess how staffing levels and guidelines are evaluated for schools and departments. Is there a benchmark to compare to? Is data available from other districts for comparison? d) Determine how equity is achieved and monitored in placing employees at each campus. Education laws place certain restrictions on class size and staff qualifications and a method of meeting these guidelines must be in place. e) Determine from Department personnel what screening procedures are in effect for new employees. Employment practices and related documentation must adhere to District policy and various labor laws. Select a sample of new employees and verify that all required checks were performed and that all required data is in file. Also tested from new hire sample: Page 3

4 i. New hire is actually an employee (exists in District directory, system, etc.) ii. Payroll added new hire to payroll register in a timely manner. iii. Pay rate and deductions are consistent with supporting documentation. iv. Employee attended orientation in a timely manner. v. The employee's I-9 is maintained in a file separate from the employee's personnel file vi. A complete background check was performed. vii. All required transcripts and certification for job qualifications are on file. viii. Employee signed security policy acknowledgement form. f) Obtain an understanding of the substitute system. Document how individuals are screened for inclusion, selected for use, and tracked for salary purposes. Test as necessary. g) Determine and document what type of orientation is provided to new employees. Evaluate for adequacy. Determine if District uses a probationary period. If so, how is performance monitored during this period? Select a sample of employees and review for evidence of probationary evaluations. h) Obtain a copy of the most current Employee Handbook. Determine how the manual is distributed and updated. Comment on adequacy of content. 7) Performance and Evaluation Records a) Accurate and timely job descriptions are an important mechanism for ensuring organizational clarity and administrative control. Determine whether job descriptions are available for each position. Assess whether they are adequate, dated, filed, and whether a copy has been provided to each employee. b) Determine the District's schedule for preparing performance evaluations. Select a sample of employees and verify that the required evaluations have been prepared within the appropriate time frames. Examine completed evaluations for adequacy of information and documentation of performance. Ensure that the evaluation has been signed by the employee, that progress discussions are conducted on a regular basis and are documented, and that goals are realistic and measurable. Page 4

5 8) Employee Relations a) Determine through discussion with Human Resource management what procedures are in place to ensure that employment related policies are enforced consistently and objectively, and that employee disputes are promptly and properly resolved. b) Obtain documentation of recent grievances filed by employees and determine the disposition. If the grievance was upheld by management, attempt to identify what factors contributed to the situation and what steps have been implemented to prevent recurrence. c) Determine from HR personnel what procedures are performed when an employee terminates, either voluntarily or involuntarily. Select a sample of employees terminated in the past six months and review records to see that all appropriate action was taken. d) For employees selected above, ensure that an exit interview form or checklist for separation was completed. e) Review payroll records after termination to ensure that no salary was paid after the termination date. 9) Compensation and Benefits a) Document how salary and benefit schedules are established, monitored, and revised to ensure that the District can attract and retain qualified employees. b) Determine what procedures are in place to ensure that salaries and benefits are consistently administered and result in internal equity among positions. c) Examine documentation of recent requests for changes in position or salary, both approved and denied. Ensure that criteria for measurement were equitably and accurately applied. Page 5

6 10) Required Regulatory Notices a) Noncompliance with federal and state regulations could result in fines or other disciplinary actions. Ensure any required posters or notices are displayed. Regulations affecting HR are: i. Equal Employment Opportunity Commission (EEOC) ii. Fair Labor Standards Act (FLSA) iii. Family and Medical Leave Act (FMLA) iv. Occupational Safety and Health Act (OSHA) v. The Equal Pay Act vi. The Age Discrimination in Employment Act (ADEA) vii. American with Disabilities Act (ADA) viii. Texas Commission on Human Rights ix. Federal Drug-Free Work Place Act x. Federal Drug-Free Schools and Communities Act xi. Pro Children Act (No Smoking) xii. Texas Hazard Communications Act xiii. Texas Structural Pest Control Board (1) To be posted 48 hours before a pesticide application. xiv. Texas Workforce Commission xv. Texas Worker's Compensation Rule xvi. Texas Whistleblower's Act 11) Custody of Personnel Records a) Ensure that access to personnel records is limited to authorized employees only. Determine whether files are consistently safeguarded during and after business hours. Page 6