HR AUDITING GOES LIVE!  

18  February  2015  

 By  Chris3ne  Botha  

Audit Unit structure

SABPP Board SABPP CEO

Head of Audit Unit

Lead Auditors (50) Auditors (150)

Audit Unit Officer

QA SERVICES (To be provided by

existing LQA function)

FUNCTIONS  • Oversees  structure  and  processes  

• Overview  audit  reports  • S3mulate  con3nuous  improvement  

FUNCTIONS  Offer  exis3ng  office  func3ons  &  will  contribute  on  a  matrix  structure  (e.g.  Stakeholder  Rela3ons,  Research  and  Professional  Services  

HR Audits Council (Board

committee)

Three Lines of Defence (adapted from ECMA/FERMA guidance on the 8th EU Company Law Directive, Article 41)

Management Control

   

Internal  Control  Measures  

   

Internal  Audit  

1ST  LINE  OF  DEFENCE  

2ND  LINE    OF  DEFENCE  

3RD  LINE    OF  DEFENCE  

Ø  Financial  Control  Ø  Security  Ø  Risk  Management  Ø  Quality  Ø  Inspec3on  Ø  Compliance  

ORGANISATIONAL  BOARD  /  AUDIT  COMMITTEE  

SENIOR  MANAGEMENT  

Three Lines of Defence (adapted from ECMA/FERMA guidance on the 8th EU Company Law Directive, Article 41)

Management Control

   

Internal Control Measures

   

Internal Audit

1st  line  of  defence  

2nd  line    of  defence  

3rd  line    of  defence  

Ø  Financial Control Ø  Security Ø  Risk Management Ø  Quality Ø  Inspection Ø  Compliance

ORGANISATIONAL  BOARD  /  AUDIT  COMMITTEE  

SENIOR  MANAGEMENT  

SABPP    HR  Audit  

4th  line    of  defence  

Ø  Team of experts looking in from the outside Ø  Set requirements intended to strengthen controls in an

organisation Ø  Independently and objectively assesses the whole or some part

of the first, second, and third line of defence Ø  “An HR management performance audit is future orientated

and can identify areas for organisational improvement” - Abstract from Dissertation; Chris Andrews: Bond University

External Auditing

Ø  “HR Auditing crosses the boundaries between HR management and auditing… it can be a suitable method for evaluating the contribution of HR activities to organisational objectives assessed on the basis of value for money.” – Abstract from Dissertation; Chris Andrews: Bond University.

Ø  This model provides HR Professionals with a robust, risk-based framework to ensure an integrated, aligned and well-governed approach to auditing the National HR Standards.

Ø  Ensures that HR controls quality and consistency in accordance with the spirit of good governance as documented in King III.

Ø  Focus on strengthening the HR Business Partner philosophy without compromising the principles of quality and independence.  

Why HR Standard Auditing?

Ø Comprehensive audit manual and tools Ø Quality assurance and system Ø Auditor competency profile Ø Training manual Ø Selection and training auditors

Progress

Achieving Certification is a Milestone on a Journey

Improvement Plans

CPD

Case studies

Post Audit

Assign audit team

Conduct audit

Close out meeting

Audit report and findings

Certification (or not)

Audit

Prepare HR Team

Brief Line Management

Self-Assessment Tool

Address gaps

Build competencies

Pre-audit

Ø Impartiality Ø Competence Ø Responsibility Ø Openness Ø Confidentiality Ø Responsiveness to complaints Ø Professional integrity

Core Values of the SABPP Audit Brand

Certification Process for Auditors

CP

D

Pre-selection Criteria

Training and Exams

Reference Checks & 360° Evaluation

Participate in Audits &

Certification

SABPP Audit Unit

Ø 76 Auditors completed their stringent, comprehensive selection and training process.

Ø Some of these will act as facilitators rather than auditors Ø  Immediate products available are:

Ø  Pre-audit consultation Ø  Full audits of 13 standards Ø  Single standard audit with provisional credit

Ø Work will be conducted in accordance with the highest ethical and professional standard

Ø The SABPP Internal Audit and Quality Assurance will apply

Ø  We have a world-class product Ø  We cannot and will not tolerate any form of mediocrity! Ø  Confidentiality agreements will be signed by all Auditors Ø  A complaints process is in place Ø  Fraud prevention measures are in place Ø  We already have a National footprint Ø  Our aim is to work in partnership with our HR colleagues Ø  Support YOU in achieving entrenching the standards within your

own organisation Ø  Non-punitive

SABPP Audit Unit

Our Auditors Alicia  Singh Jan  Prinsloo Marlain  Polovin Penny  AbbottAnthea  Saffy Joan  Stanbridge Marsha  Pieterse Raun  SmytheAt  Strydom John  Nkwana Mbulelo  Khonjwayo Sabelo  PlaatjieBonnie  Johansen John  Paterson Michael  Glensor Sandy  Lana  Ho  HipBrett  Walker Judy  Norris Mmalefu  Manoto Shamila  SinghChristine  Botha Kate  Dikgale  Freeman Moleko  Rannona Sindiswa  MasekoCorlia  Peters Katrina  Sauls Moshekoa  Sekhuto Siphiwe  NdwalazaDanie  Swanepoel Kgomotso  Mphahlele Natasha  Carstens Sithabiso  MabasoDawid  Swart Leane  Breedt-­‐Maree Natasha  Rudy Sivaan  MarieDennis  Coetzee Leanne  Maree Nico  Teledimo Sivapragasen  ChettyDewald  van  der  Schyff Lomkhosi  Magagula Nimee  Dhuloo Suran  MoodleyElizabeth  Warren Lucas  Bornman Nombasa  Mhlati-­‐Musene Thapelo  MotloungElsabé  Bell Lynn  Roux Nthabiseng  Lebea Thys  ViljoenFienie  van  Rensburg Lynne  Gamsu Pat  Naves-­‐Shongwe Tracy  HarperFrank  de  Beer Manie  Roodt Pat  Smythe Xolani  MawandeGugulethu  Madlala Maphutha  Diaz Paul  Krige Yendor  R  FelgateHazel  Hall Marius  Jacobs Paula  Teigao Zamasishi  Madlala

Audit Process

Offer and contract

Initiate audit & prepare on-site activities

Conduct audit, agree on findings, conduct close-out meeting and submit report to Audit Unit

Audit Unit confirms findings, certification status and recommend continuous improvements

Three Year Certification Cycle All 13 elements of the Standards will be audited Each element must receive a score of 60%

YEARS 1 AND 2

INITIAL AUDIT

REASSESSMENT AUDIT (where one element needed rectification)

Ø  Compliant Ø  Minor Non-Compliance Ø  Major Non-Compliance

YEAR 3 RECERTIFICATION AUDIT

prior to expiration of certification (shortened procedure)

Audit records retained for five years

► Audit certification may only be issued by the SABPP ► Audit registers will be maintained ► Only auditors who are qualified through the SABPP may conduct

audits ► All audits must be administered by the SABPP Audit Unit

Certification

SABPP Audit Certificate

► Standards Training (in-house) R15,000 ► Full audit (one site) R98,000 ► Additional sites R70,000 per site ► Single standard audits R49,000 ► SMMEs and smaller municipalities Per quotation

►  1 x Lead Auditor ►  3 x Auditors ►  Full audit report with recommendations for continuous improvement

*VAT, travel and accommodation (where needed) excluded

Cost of an HR Audit

Current reality

Ø  HR Professionals are nervous about being audited Ø  HR Professionals realise that their house is not 100% in order Ø  HR are overburdened with administrative and transactional activities

rather than being strategically focused Ø  Some companies still do not understand the role of HR Ø  HR still does not have a place in the boardroom Ø  Companies invest more in IT and other activities than in HR

Telesure – message from Dawid Swart

Ø  Telesure started transforming HR during 1997 when Leon Vermaak read Dave Ulrich’s book Human Resource Champions

Ø  Most existing HR strategies dovetail quite easily with the HR Standard, and no wonder, the HR Standard was developed by the HR fraternity of SA

Ø  The National HR standard challenge organisation to fast-track implementation, to be audited and make Certification part of the Employee Value Proposition

Ø  The National HR standard is what organisations and employees expect from their HR Department. Full implementation must happen now, it cannot be placed on a three year plan

Ø  Treat implementation as a proper project with clear timelines, responsibilities and milestones and do not forget your Change Management plan otherwise resistance will kick in which will slow down progress

Telesure makes world history

Introducing Kholeka Ngubeni-Henderson

Executive Head of Human Resources