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Compliance TrainingHR and Finance Audit Requirements
April 2016
Rules and Regulations
• There are a number of laws and regulations that administration has to enforce through out the organization.
• Without a clear understanding of why certain requirements/restrictions are in place it can create a tense dichotomy between programs and administration.
• Michael Scott vs. Toby Flenderson
What is an Audit?
• An audit is an official inspection of an organization’s accounts and associated documents and files to ensure the organization is adhering to its polices and procedures and applicable laws and regulations.
• The GPTCHB audit is conducted annually by an independent auditor.
• Auditors provide an opinion as to whether financial statements are presented fairly and accurately.
• Test internal controls which is a process to control risk to the organization.
Why is a Successful Audit Important?
• Dings in audits can prevent future funding
• Poor audits be costly to the organization
• Audits ensure consistency and reliability throughout the organization
Finance Audit Requirements
• The Accounting Policies and Procedures manual was designed primary for the guidance of the finance staff and to standardize procedures that meet the requirements of internal controls and reporting requirements.
• The audit ensures finance is adhering to the accounting policies and procedures.
Purchasing
•A purchase can only be made after it has gone through the procurement process and a purchase order has been issued:
• Purchase request with manager’s signature and quote
• 3 quotes for unit costs over $1,000 or sole source justification
•Disbarred vendor test
•Additional signatures if over $1,000 and over $25,000
•Verification of funds available and purchase allowable
•Attach required paperwork: W-9/quote/agenda/contract
Accounts PayableAn invoice can be paid when the following criteria are met:
• Satisfactory evidence of goods received-packing slip with initials or email
• Invoice received
• Justification if the invoice exceeds the PO amount by $50
• Voucher has been approved by the finance staff
• Funds are available
Travel
• Travel advance-submit to finance 10 days prior to travel
• Meals and lodging paid at maximum per diem rates for CONUS
• Standard vs. POV mileage rate
• Airfare booked 14 days in advance at coach fare
• Car rental policy is mid-size or requires a justification
• Consultant travel is by reimbursement unless approved by CAO
Travel Continued
• Settle up 3 days after travel. Employees are not eligible for an advance if there is outstanding travel
• Reimbursement by an outside agency-sign check over to GPTCHB
HR Audit Requirements
• HR is required to be compliant with various laws and regulations.• Regulations – enforced by an administrative agency, often enforced like the law• Laws – passed by the U.S. Congress or state legislatures
• In an audit, employee files are inspected to ensure appropriate documentation is retained relative to each employee.
• Auditors also inspect to ensure documentation (files, timesheets, travel, etc.) is in line with organization policies and procedures along with state and federal laws and regulations.
Employee Files
• Each employee has between five to seven employee files including:
1. General personnel file2. Medical file3. Background check file4. Form W-4 file5. Form I-96. Accident and illness7. Discipline/investigation
General Personnel File
• General personnel files do not contain confidential personal information (i.e. birth date, social security number, medical information).• Personnel Action Notices (PANs) and performance evaluations
• Employment information (position descriptions, employment application, etc.)
• Salary deferral forms (retirement and benefits)
• Certificates/training
• Miscellaneous
General Personnel File Cont.
• PAN’s – indicate any change in an employee’s position (title, pay, funding, etc.).
• Auditors inspect to see if PAN’s are up-to-date and accurately reflect the employee’s current position, funding source, etc.
• Performance Evaluations – evaluate an employee’s performance during their introductory/review period and annually.
• Auditors look to ensure evaluations are done timely, align with PAN’s and fairly and objectively evaluation performance.
General Personnel File Cont.
• Position Descriptions – outline employee’s essential functions and job expectations.
• Auditors want to see that these are current (updated at least annually) and accurately reflect the employees job.
• Offer Letter – outlines the terms of employment.
• Auditors inspect to ensure signatures are affixed and the letter accurately represents the employee’s position.
General Personnel File Cont.
• Application and Resume – show consistency in the hiring process.
• Auditors ensure applications are in line with laws and regulations and similar documents are retained for all employees.
• Policy Forms (New Hire Orientation, Certification, Confidentiality, Sexual Harassment, Drug & Alcohol, Physical Activity)
• These show auditors that all employees are educated regarding organizational polices, procedures, and standard practice.
General Personnel File Cont.
• Deduction Forms – retirement and health insurance.
• Do not provide confidential information, but allow finance and HR to identify which benefits the employee selected and ensure appropriate salary deferrals are done.
• Auditors look to see that all eligible employees complete the forms (even if waiving participation) to ensure all employees are educated on benefit opportunities and have the opportunity to participate.
• Eligibility requirements are required upon setting up a benefit structure.
General Personnel File Cont.
• Trainings and Certificates – Examples include HIPAA, CITI, Fred Pryor.
• Auditors want to see that all employees participate in mandatory trainings.
• Show continuous training and education.
• Miscellaneous – any item relevant to the employee that does not contain confidential information (flex schedules, educational leave forms, etc.)
Medical File
• Confidential
• Contains insurance applications, doctors notes, etc.
• Kept separate from all other employee files.
Form I-9
• Form I-9 verifies that employees are eligible to work within the U.S.
• Must be filled out correctly or subject to fines.
• Employee must complete the personal information section on the first day of employment
• Document verification must occur within the first three days of employment.
• Retention: must keep until one year after hire date or three years after date of separation; whichever is later.
Form W-4
• All W-4’s are kept in their own folder separate from other employee files.
• Form W-4 is used to withhold the proper amount of federal income tax from your paycheck.
Illness and Accident
• All information regarding occupational illnesses and injuries are contained in the illness and accident folder.
• May include worker’s compensation forms, doctors notes, accident reports, etc.
• Workers compensation/incident reports are kept with Debee, Staci, Sunny and HR. They are also available on the current employee page of the website.
Discipline and Investigations
• All information regarding employee discipline/investigations are contained in this file.
• May include verbal warnings, written warnings, performance improvement plans, investigation notes, etc.
• Disciplinary action should adhere to the structure outlined in the personnel policies and procedures.
Background Check File•Background checks are
done upon hire and are retained in the background check file.
•Confidential and kept separate from all other files.
Interview Materials
• Interview materials must be consistent and retained by HR.
• Includes:
• Applications, resumes and cover letters
• Position description
• Interview questions
• Reference checks
Interview Materials
• Interview questions should generally not address the following topics:• Other names used
• Birthplace
• Religion
• Age
• Race
• When an applicant graduated
• Citizenship
• Relatives
• Military discharge
• Health and disability
TimesheetsHR & Finance Requirement
• Timesheets certify the hours worked of an employee.
• Must be accurate and have all appropriate paperwork attached.
• Attached paperwork shows that we are being compliant with our policies and procedures.
• Signatures certify that everything is correct.
• Prior approval for OT
Timesheets ContinuedHR & Finance Requirement
• Co-funded timesheets and single objective forms
• Holidays and admin leave for off-site employees need to be attached
• Administrative time approved by CEO or tribe only
Types of Employees & Independent Contractors
• Non-Exempt Employees
• Paid on an hourly basis.
• Entitled to overtime pay for any hours worked exceeding 40 hours in a workweek (GPTCHB’s workweek is defined as Sunday-Saturday).
• GPTCHB non-exempt employees may not work more than 40 hours per workweek unless overtime pay is approved in advance.
Types of Employees & Independent Contractors Cont.
• Exempt Employees
• Not subject to overtime provisions of the FLSA
• Different types of exempt classifications including executive, administrative, professional, sales
• All exempt classifications must meet a combination of criteria usually involving salary, nature of work, discretion, supervisory duties, etc.
Types of Employees & Independent Contractors
• Independent Contractor
• Not an employee of the health board, but hired to perform a project.
• All GPTCHB contracts are required to be routed appropriately. Approval from finance and/or HR for employee or contractor classifications is needed.
Types of Employees & Independent Contractors
Safety Review
• All employees are required to read and adhere by the GPTCHB Employee Safety Handbook and Emergency Action Plan.
• Tips to reduce hazards:
• Do not leave boxes or items in the hallway or doorways.
• No not use any faulty or broken equipment.
• Avoid lifting materials that you are not physically able to or that may cause a strain of any type.
• Always keep your work area clean and orderly.
Safety Review Cont.
• Do not have candles, space heaters or halogen lamps in your office.
• Do not attempt to repair defective wiring or other electrical equipment.
• Do not use faulty or makeshift ladders.
• If something looks unsafe or you are in doubt ask.
• Always report a workplace illness or injury to HR immediately.
Good housekeeping habits are the best way to avoid occupational illness and injury.
Safety Review Cont.
• Office Ergonomics
• Setting up your workstation to comfortably accommodate your work is critical to preventing lifelong injuries.
• Review of office ergonomics
It’s a team effort.
• Passing an audit successfully requires effort from everyone.
• Closely inspect any document you are required to sign.
• Ensure everything in the document is accurate, timely and relevant.
• When asked for assistance in creating a document, take your time to ensure it is done correctly.
• Always make sure you and your employees are being compliant with polices.
Learning Assessment
• Break into groups of five.
• Teams may work together to complete the compliance quiz.
• When your team is done with the quiz tally up the scores.
• The team or teams with the highest score will receive prizes.
GREAT PLAINS TRIBAL CHAIRMEN’S HEALTH BOARD (GPTCHB)1770 Rand Road
Rapid City, SD 57702
Phone: 605.721.1922 Toll Free: 1.800.745.3466
Fax: 605.721.1932
Email: [email protected]
Thank you
