AUDIT PLAN

AUDIT PLAN

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REVIEW PLAN Sick Leave Usage September 2006 REVIEW PURPOSE The purpose of this review is to determine how agencies are using leave codes to report and track protected leave, compare state agencies’ sick leave usage to the national average as well as to prior data from agencies, and determine how sick leave is being managed by state agencies. REVIEW SCOPE The review team will identify the percentage of wages paid for non-protected sick leave in comparison to the total compensation for each Executive Branch agency (excluding Lottery, Treasury, and Secretary of State). Protected sick leave is leave taken under Family Medical Leave Act (FMLA), Oregon Family Leave Act (OFLA), or Workers’ Compensation. The review team will identify state agencies whose non-protected sick leave usage rate is either above or below the 2% national average for state and local government. The review team will examine payroll records to ensure sick leave used by an employee was coded appropriately and identify sick leave usage trends for each agency. REFERENCES Department of Labor (DOL) National Average of Sick Leave usage. HRSD State Policy 60.000.01 – Sick Leave with Pay states, in relevant part, “Sick leave with pay is an accrued benefit that is granted to eligible employees to provide time off from work for personal and family illness or injury…. An employee may use accrued sick leave with pay…for personal or a family member’s illness…or any ...

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R
EVIEW
P
LAN
Sick Leave Usage
September 2006
R
EVIEW
P
URPOSE
The purpose of this review is to determine how agencies are using leave codes to report and track
protected leave, compare state agencies’ sick leave usage to the national average as well as to prior
data from agencies, and determine how sick leave is being managed by state agencies.
R
EVIEW
S
COPE
The review team will identify the percentage of wages paid for non-protected sick leave in comparison to
the total compensation for each Executive Branch agency (excluding Lottery, Treasury, and Secretary of
State).
Protected sick leave is leave taken under Family Medical Leave Act (FMLA), Oregon Family
Leave Act (OFLA), or Workers’ Compensation.
The review team will identify state agencies whose non-
protected sick leave usage rate is either above or below the 2% national average for state and local
government.
The review team will examine payroll records to ensure sick leave used by an employee
was coded appropriately and identify sick leave usage trends for each agency.
R
EFERENCES
Department of Labor (DOL) National Average of Sick Leave usage
.
HRSD State Policy 60.000.01 – Sick Leave with Pay
states, in relevant part, “Sick
leave with pay is an
accrued benefit that is granted to eligible employees to provide time off from work for personal and family
illness or injury…. An employee may use accrued sick leave with pay…for personal or a family member’s
illness…or any period of absence from employment qualifying as family or medical leave under HRSD
State Policy 60.000.15, Family Medical Leave.”
HRSD State Policy 60.000.15 – Family and Medical Leave
states, in relevant part, “an appointing
authority shall assure employees are aware of and are granted entitlements for taking family and medical
leave, in accordance with provisions of: Federal Family and Medical Act (FMLA)…Oregon Family Leave
Act (OFLA)….”
Oregon Accounting Manual Policy Number 45.07.00.PO
states, in relevant part, “This policy
establishes standards of accountability
and internal control
to ensure that all time records are
appropriately reviewed and approved by agency management.”
Collective Bargaining Agreements
– articles related to utilization of sick leave and protected leave.
R
EVIEW
E
LEMENTS AND
M
ETHODOLOGY
Overall Methodology – Data from the Oregon State Payroll System (OSPS) DataMart and the Position
and Personnel DataBase (PPDB) will be used to identify employees who have used non-protected sick
leave between July 1, 2005, and June 30, 2006.
To calculate an average for each agency, the review
team will look at what percentage of the total compensation is non-protected sick leave.
Total
compensation includes the base salary plus all OPE costs.
The review team will identify agencies that appear to have a non-protected sick leave percentage greater
than the national average of 2.0%.
The review team will review the agency that appears to have the
highest sick leave usage rate and from the remaining agencies select a random sample (20%).
HR Audit Program
Page 1 of 3
September 2006
The review team will identify agencies that appear to have a non-protected sick leave percentage lower
than the national average of 2.0%.
The review team will review the agency that appears to have the
lowest sick leave usage rate and from the remaining agencies select a random sample (20%).
1.
Element – identify if protected sick leave is being coded correctly on timesheets and compare to
prior agency data.
Element Risk Assessment* = 2 (Public Perception, Stewardship of Public Funds)
Methodology – The data will be reviewed to identify employees, in the selected agencies, that
used more than 24 hours of sick leave in a month.
The review team will contact the affected
agencies for more information to determine if the sick leave was coded correctly.
2.
Element – compare state’s unprotected sick leave usage to national average using current and
prior data.
Element Risk Assessment* = 2 (Public Perception, Stewardship of Public Funds)
Methodology – The data will be used to calculate the percentage of total compensation state
agencies paid for non-protected sick leave and compare that percentage to the national average
using current and prior data.
3.
Element – gather information on current agency sick leave policy and practices.
Element Risk Assessment* = 2 (Public Perception, Stewardship of Public Funds)
Methodology – Send survey to all agencies to find out how each agency administers sick leave.
Identify factors that may result in higher than average sick leave rates and identify best
management practices that may result in lower than average sick leave usage rates.
Compare to
prior agency survey responses.
S
YSTEM
D
ATA
S
OURCES
9
Report produced from data on the OSPS DataMart and PPDB.
For each agency, it will include the
following data fields:
Agency Number
Leave Type Code
RDC Code
County Code
Employee Name
Gross Pay Amount
Employee Identification Number
Pay Period Ending
Authorization Number
Pay Type Code
Position Number
Pay Type Description
Position Representation Code
Payroll Distribution Code
Position FLSA Eligible for Overtime
Leave Hours Lost
Employee Representation Code
Leave Hours Advanced
Employee FLSA Eligible for Overtime
Transaction Code
Employee Recognized Service Date
Age
Base Pay Rate
Gender
Part-time/Full-time Code
Ethnicity
Classified Code
HR Audit Program
Page 2 of 3
September 2006
*E
LEMENT
R
ISK
A
SSESSMENT
(ERA)
E
LEMENT
R
ISK
A
SSESSMENT
(ERA)
1
Potential for
significant
monetary impact resulting from penalties or legal action or loss of productivity.
There could also be the potential for a significant adverse impact on the health, welfare and/or safety of
those served, or the public’s perception of state government resulting from inappropriate expenditures
and/or poor stewardship of public funds.
Corrective actions assure compliance within
30 days
and
follow-up actions may include further analysis of the audit subject and/or agency human resource
management practice application.
2
Potential for
moderate
monetary impact resulting from penalties or legal action or loss of productivity.
There could also be the potential for a moderate adverse impact on the health, welfare and/or safety of
those served, or the public’s perception of state government resulting from inappropriate expenditures
and/or poor stewardship of public funds.
Corrective actions assure compliance within
90 days
and
follow-up actions may include further analysis of the audit subject and/or agency human resource
management practice application.
3
Potential for
relatively low
monetary impact resulting from penalties or legal action or loss of
productivity.
The practice does not constitute a best management practice and may cause minor
disruptions and inconveniences to others or the workflow.
Corrective actions are in the form of
recommendations for future practices
or for agency to receive training in the human resource
management area where deficiency is observed and may include further analysis of the audit subject
and/or agency human resource management practice application.
For more information on Element Risk Assessments, please go to the HR Audit Program webpage
at:
www.hr.das.state.or.us/hrsd/audit
.
You can view the Corrective Action Plan and Follow-up
Procedures Guidelines under “Program Documents.”
HR Audit Program
Page 3 of 3
September 2006