Human Resources Audit Analysis

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Objectives & Scope
The human resources audit includes a sampling assessment of the following areas: classifications/FLSA, pay, time, attendance, growth, hiring, terminations, onboarding, employment eligibility, benefits, compensation, safety, performance management, organizational culture, and communication.

Unless specified, audit assessment is by means of workforce sampling (across various regions, position type and classifications). For example, PTO assessment does not audit all PTO calculations for each employee, but rather a selected few. The data for the sampling includes West Yost personnel files, interviews, payroll records, and data from various sources.

The audit aligns to West Yost’s industrial classification, and gathers information
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Classifications. The organization utilizes the following classifications: regular full-time, regular part-time, irregular part-time, and limited term.
b. Pay cycle processes. West Yost has a set determined pay schedule which is well defined according to pay period, pay date, and work day. This information matches the payroll and timecard systems. While new hire, term, and pay changes generate from HR with appropriate approvals, the accounting department is responsible for processing payroll. Based upon a review of the employees sampled, employees were paid in accordance with time and attendance. Voluntary and mandated deductions were also processed according to documentation on file, and defined payroll processes.
c. Administrative processes. The accounting department has reconciliation methods in place to verify the accuracy of payroll, time, attendance and benefits. Changes are initiated by a manager through the HRIS system (through an organizational workflow). With new hires, and system changes, the Human Resources department does not have a documented process in place to bolster entry
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Time reporting, in-out/times, breaks, meal periods, etc. According to the organizational handbook, West Yost requires employees to punch out for their meal periods, and break periods. However, in review of sample timecards, employees did not indicate in/out times according to meal periods or breaks, rather a block of hours worked is noted. Plus, there does not also seem to be a mechanism in place to ensure employees take their meal period, such as a missed punch report. Due to California overtime laws recording actual in/out times in the day may ensure OT is allocated and calculated correctly. Lastly of those sampled, Fetch HR found that with timecard changes made by administrators (after employee approval), timecards are not re-routed for re-approval, or not documented in an employee payroll
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