standard operating procedures sop nadra bulk.....12 2.8. documents verification.....13 2.9....

PROFESSIONAL EMPLOYERS PRIVATE LIMITED

Proprietary Notice: This document contains confidential information proprietary to People™ and may not be reproduced, copied or used for purposes other than its intended use without the prior written consent of People™, the information in this document is subject to change without notice.

Standard Operating Procedures ‐ SOP

SERVICE DELIVERY – MIS & CPU

People™ ‐ CR/SD ‐ SOP

Version: 1.2

September 2008

Karachi 704 Progressive Plaza Beaumont Road, Karachi-75530, Pakistan Tel: (+921 21) 111 000 737 Fax: (+92 21) 567 9563

Lahore 42C, E/1 Gulberg III, Lahore - 54660, Pakistan Tel: (+92 42) 111 000 737 Fax: (+ 92 42) 577 7819

Dubai Suite 112, Al Moosa Tower 1, P.O.Box 121400, Sheikh Ziad RoadDubai, UAE Tel: (+97 14) 332 5905 Fax: (+97 14) 332 5906

Service Delivery SOPs ‐ v 1.2

People™‐CR/SD Confidential Internal

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Document Overview



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TABLE OF CONTENTS

1. Definitions and Abbreviations ............................................................................................................6

2. Service Delivery ‐ MIS Operations .....................................................................................................7 2.1. Overview .....................................................................................................................................7 2.2. Employment Letter Issuance .......................................................................................................7 2.3. General Letter Issuance ...............................................................................................................8 2.4. Employee Code Generation.........................................................................................................9 2.4.1 Primary Particulars..............................................................................................................9 2.4.2 Secondary Particulars ........................................................................................................10 2.5. Employee’s Document Management.........................................................................................10 2.6. Employee’s ID Card Issuance ....................................................................................................11 2.7. CNIC Verification ......................................................................................................................12 2.7.1 NADRA Verisys ................................................................................................................12 2.7.2 NADRA Bulk.....................................................................................................................12 2.8. Documents Verification .............................................................................................................13 2.9. Insurance Management .............................................................................................................14 2.9.1 Proposal Acquisition Process ............................................................................................14 2.9.2 Claim Process ....................................................................................................................15 i. Contractual Liability & 3rd Party Liability................................................................................15 ii. Group Hospitalization Claim Process .......................................................................................16 iii. Group Life Insurance Process....................................................................................................17

3. Service Delivery – CPU Operations ..................................................................................................19 3.1 Overview ...................................................................................................................................19 3.2 Invoice Generation ....................................................................................................................19 3.3 Payment Disbursement .............................................................................................................20 3.4 Out of Pocket Payment – OOP ..................................................................................................22 3.5 Stop Payments ...........................................................................................................................23 3.5.1 Stop & Reissue Cheques ....................................................................................................23 3.5.2 Stop Cheque.......................................................................................................................24 3.6 Gratuity Payments.....................................................................................................................24 3.6.1 Through Invoices...............................................................................................................24 3.6.2 Already Claimed ...............................................................................................................26

4. Service Level Agreements ...................................................................................................................28

5. Audit Process.........................................................................................................................................29



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5.1 Internal Audit By Service Delivery............................................................................................29 5.2 External Audit By Compliance & Audit ....................................................................................29

6. Reporting Process .................................................................................................................................31 6.1 Reporting CR & SD – MIS/CPU.................................................................................................31 6.1.1 From CR to SD ‐ CPU ........................................................................................................31 6.1.2 From SD – MIS/CPU to CR ................................................................................................31 6.2 Reporting Finance & SD – MIS/CPU .........................................................................................32 6.2.1 From SD – MIS/CPU to Finance.........................................................................................32 6.2.2 From Finance to SD – MIS/CPU.........................................................................................32

7. Procedure for User Profiles/Passwords Management....................................................................33

8. Procedure for Source Code Review...................................................................................................34

9. Procedure for Software Problem Reporting ....................................................................................35

10. Procedure for Hardware Problem Reporting...................................................................................36

11. Procedure for Electronic/Paper Media Disposal .............................................................................37

12. Procedure for Backup and Restoration.............................................................................................38

13. Appendices ............................................................................................................................................39 13.1 MIS Operations Process Flow....................................................................................................39 13.2 CNIC Verification (Verisys) Process Flow.................................................................................40 13.3 CNIC Verification (Bulk) Process Flow .....................................................................................41 13.4 MIS Form for CNIC Verification ...............................................................................................42 13.5 Document Verification Process Flow.........................................................................................43 13.6 Insurance Management Process Flow .......................................................................................44 13.7 Insurance Claim (CLI) Process Flow .........................................................................................45 13.7.1 Document Check List for (CLI) Claim Process ..................................................................46 13.8 Insurance Claim (GHI) Process Flow ........................................................................................47 13.8.1 Document Check List for (GHI) Claim Process .................................................................47 13.9 Insurance Claim (GLI) Process Flow .........................................................................................48 13.9.1 Document Check List for (GLI) Claim Process ..................................................................49 13.10 Salary & Invoice Preparation Process Flow ...............................................................................50 13.11 Out of Pocket Payment Process Flow ........................................................................................51 13.12 Stop & Re‐Issue Cheque Process Flow ......................................................................................52 13.13 Gratuity Payment Process Flow ................................................................................................53 13.14 SD – MIS Audit Process Flow ....................................................................................................54 13.15 Invoice/Payment Audit Process Flow........................................................................................55 13.16 GL Posting Audit Process Flow .................................................................................................56



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13.17 OOP Payment Audit Process Flow............................................................................................57 13.18 MIS Form ...................................................................................................................................58 13.19 Software Problem Report Form .................................................................................................59 13.20 Hardware Problem Reporting Form..........................................................................................60 13.21 Contents of Recruitment Pack ...................................................................................................61 13.22 Contact Information ..................................................................................................................62



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1. DEFINITIONS AND ABBREVIATIONS



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2. SERVICE DELIVERY ‐ MIS OPERATIONS

2.1. OVERVIEW

SD‐MIS is custodian of PPM & PEO employee’s database and documentation. SD –

MIS responsibilities include but not limited to issuance of ELs, GLs, employee ID

cards, employee code generation, employee’s document management, insurance

management, CNIC & documents verification, etc. The purpose of this document is to

keep SD – MIS operations standardized and any change in the procedure will be

added, version will get revised and then approved from the concerned authorities.

2.2. EMPLOYMENT LETTER ISSUANCE

The Employment Letter containing terms & condition of the employment issued to the

selected candidate. Employment with People™ will commence on acceptance of

Employment Letter. The following steps are integral in issuing an Employment Letter

of any client:

SD ‐ MIS receives the information on EL request template from CR

The information on EL template will be added in the prescribed format of EL with

respect to the client

Two copies of EL will be printed , one will be kept by the employee other for

People™ record

The recruitment package (Annexure 13.21 attached) will be attached with EL as

per checklist

EL will be dispatched to the recipient address provided in EL request template

The details of EL will be added in MIS maintained for EL issuance

One full working day up to 40 letters will be benchmark STAT for EL process.



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In case of any delay, issue will resolve in 4 working hours and verbal /written

warning will issue to responsible OE/SE as per HR policy then an interchange in

SD – MIS team may require before taking the final step

Please see process flow diagram of “Employment Letter Issuance” in appendix 13.1

2.3. GENERAL LETTER ISSUANCE

General letters include but not limited to experience/verification letters, transfer letters,

show cause notices/warning letters, promotion/increment letters &

termination/acceptance of resignation letters etc.. The following steps are integral in

issuing of any GL for any client:

SD ‐ MIS receives the information on GL request template from CR

The information on GL template will be added in the prescribed format of GL

with respect to the client

Two copies but not limited to each GL will be printed , one will be kept by the

employee other for People™ record

GL will be dispatched to the recipient address provided in letter’s request

template

The details of GL will be added in MIS maintained for general letters issuance

One full working day up to 100 letters will be benchmark STAT for GL issuance.

For Experience Letters and Antecedent Verification Letters, SD – MIS will

response respectively on every Monday (for Experience Letter up to 200) and

Tuesday (for Antecedent Verification Letters up to 100).

In case of delay, problem will be resolved with immediate response in 4 working

hours and verbal /written warning will be issued to responsible OE/SE as per HR

policy then an interchange in SD – MIS team may require before taking the final

step.



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Please see process flow diagram of “General Letter Issuance” in appendix 13.1

2.4. EMPLOYEE CODE GENERATION

Every employee is assigned a unique code for his/her identification & future

correspondence. Following steps are part of employee code generation process:

SD ‐ MIS department receives documents after being filled up by employee (EL

& recruitment package) from CR

SD ‐ MIS will check the documents and acknowledge CR via email of

received/missing documents.

The SD ‐ MIS will assign a unique code to the documents which will become

employee code of that individual and enter the particulars of the employee in

payroll system

The employee codes are also generated through STFs received from CR provided

primary particulars & validated on receipt of documents.

One full working day up to 50 codes will be benchmark STAT for employee

code generation process.

The employee particulars can be broken down in two categories namely primary

& secondary. No code can be generated without primary particulars.

Any query regarding employee code generation will be handled with in 2

working hours verbal /written warning will issue to responsible OE/SE as per

HR policy then an interchange in SD – MIS team may require before taking the

final step

The details of particulars are as follow:

2.4.1 PRIMARY PARTICULARS

Employee’s name, Copy of CNIC, department, designation, date of joining, salary,

gender, date of birth, type of employment (salaried or commission based)



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2.4.2 SECONDARY PARTICULARS

Father’s/husband name, residential address, contact #, region, city ,religion, bank

branch name, a/c #, marital status, , personal file status, last qualification, previous

employment & document checklist (Annexure 13.21 attached).

Employee codes will then be sent to CR & SD – CPU (if required) for future

correspondence / action.

Updating / amendment (a/c #, branch posting, city, section, designation, increment

etc.) in the Payroll will be made upon receiving STFs / document from client

through CR.

Please see process flow diagram of “Employee Code Generation” in appendix 13.1

2.5. EMPLOYEE’S DOCUMENT MANAGEMENT

Employee’s document contains full details confidential / non‐confidential of the

employee which can be needed time to time. The safe custody of the documents is one

of the critical parts of SD‐MIS functions. Following steps are part of this process:

Employee code will be put on the Employees’ Personal File

The employee code & name will be entered in the MIS.

Employee’s picture will be scanned for ID card

Employee personal file will be forwarded to the scanning desk for scanning

The scanned file will be placed in Laserfiche® & hard file will be placed into the

respective cabinet, drawer & flap

Cabinets will be tagged with client name, drawer number

Loose documents will be scanned, placed in respective folder of Laserfiche® and

hard copy put in the physical place.

The personal files will be kept in cabinets only for active employees



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The personal files of resigned / inactive employees will be placed in store room in

boxes with proper tagging

Four full working days will be benchmark STATs for employee’s personal file

management process

The MIS for resigned / inactive staff will be maintained for the record

Please see process flow diagram of “Employee Document Management” in appendix

13.1

2.6. EMPLOYEE’S ID CARD ISSUANCE

Every employee of People™ issued an ID card for his / her identification and easy

movement across the offices. Following steps are part of employee’s ID card issuance

process:

SD ‐ MIS will prepare & forward the standard template of the card upon the

request of CR

The CR will provide the approved template of the card by the client

After code generation the picture of the employee will be scanned & saved with

employee code

The required data (employee code, name, location, designation, DOJ & signature

of issuing authority) will be entered in the card template & get it printed

ID cards will be dispatched to the CR for distribution with followed up receipt

acknowledgement

The status will be updated to “issued” in payroll system.

Two full working days for up to 50 ID cards will be benchmark STAT for the

process of employee card issuance after receipt of documents.



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Any delay will be resolved with in 4 working hours and verbal /written warning

will issue to responsible OE/SE as per HR policy then an interchange in SD –

MIS team may require before taking the final step

Please see process flow diagram of “Employee ID Card Issuance” in appendix 13.1

2.7. CNIC VERIFICATION

People™ has acquired the facility to verify the CNIC of the employee from NADRA to

minimize the fraudulently. Following steps are part of CNIC verification.

Upon receiving of documents from Client through CR, SD ‐ MIS must verify the

CNIC either from NADRA Verisys or Bulk verification processes

The details of both processes are as follow:

2.7.1 NADRA VERISYS

To verify CNIC, SD – MIS will login for NADRA Verisys through HTTP server

by NADRA provided username and password

The CNIC number will be entered in the Verisys Software & the true image of

CNIC from NADRA database will be displayed

The status will be filed on prescribed form (Annexure 13.4 attached). Screen shot

will be saved in soft form.

Two full working days for up to 50 verifications will be benchmark STAT for

process of CNIC verification through Verisys

Please see process flow diagram of “CNIC verification through Verisys process” in

appendix 13.2

2.7.2 NADRA BULK

CNIC number’s text file will be uploaded in inbox provided by NADRA on FTP

server.



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Four full working days will be benchmark STAT for process of CNIC verification

through Bulk process

After agreed STATs of NADRA, verified CNIC number’s zip file will be

downloaded from the FTP server.

Please see process flow diagram of “CNIC verification through Bulk process” in

appendix 13.3

The status verified or not by NADRA will be transformed on prescribed form &

printed form will be filed in each Employee’s Personal File.

SD ‐ MIS will maintain MIS of verified staff client vise

Queries/delays will be handled in 4 working hours and verbal /written warning

will issue to responsible OE/SE as per HR policy then an interchange in SD – MIS

team may require before taking the final step

2.8. DOCUMENTS VERIFICATION

Based upon each client’s request last degree & employment verification will be

performed within a reasonable time from the related board / universities / and or

previous employers. All the cost of verification will be borne by the client or employee

as per agreement.

SD ‐ MIS will receive the request for degree verification from CR or if have a

process in place for a certain client/department to be verified the process of degree

verifications will be auto initiated by SD –MIS.

SD –MIS will forward the request to Process Outsourcing department with the

copy of last degree, copy of CNIC & one snap of the staff.

Verified copy of degree will be filed in his/her personal file and findings will be

forwarded to the CR.

SD ‐ MIS will maintain an MIS of verified staff client vise



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No STAT, as time varies form university to university, board to board & technical

board to technical board for verification of degree, certificate or diploma

respectively.

Please see process flow diagram of “Employee Document Verification” in appendix 13.5

2.9. INSURANCE MANAGEMENT

People™ offer several types of insurances i.e., group hospitalization, group life,

contractual liability, 3rd party & cash in transit insurances to hedge against the risk of

contingent loss. To cover under the above mentioned insurance following steps are the

part of process.

2.9.1 PROPOSAL ACQUISITION PROCESS

SD ‐ MIS will receive the request for insurance cover required to the client through

CR

SD –MIS will forward the details to IC to get a proposal of requested insurance.

The proposal will contain the type of coverage, limit of coverage, benefits,

premium rate & mode of payment etc.

On receipt of proposal SD‐MIS will forward it to the CR department for approval

from client. On consent of client via CR department, the request for policy

issuance will be forward to IC

The scanned copy of the policy will be shared with CR department.

SD ‐ MIS will forward the monthly addendum/deletion of staff to IC and

maintained its record

On receipt of premium bill SD –MIS will check the bill with own working (where

possible) and forward it to the Finance department for payment

The status of payment will be updated in the record maintained by SD –MIS &

cheque will be forwarded to the IC & the copy of cheque will be filed



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SD – MIS will ensure the medical cards are being issued to the employees & will

keep its record

SD –MIS will maintain an MIS of claims processed or in‐process

Seven working days for proposal acquisition will be benchmark STAT for

insurance management process.

Please see process flow diagram of “Insurance Management” in appendix 13.6

2.9.2 CLAIM PROCESS

i. Contractual Liability, 3rd Party & Cash in Transit

These insurances are to cover up any probable loss of client if it may cause due to

People™ Outsourced Employee.

SD – MIS will get intimation by client via CR highlighting the fraudulent activity

immediately along with details related to the suspected staff with date of

occurrence and discover embezzled amount & intimate the same to IC with in one

working day.

CR will issue show cause notice or suspension of service order with in 2 working

days.

IC will appoint a surveyor with in 3 working days after intimation.

ICS will meet with SD‐MIS within 3 working days after appointment. And will let

People™ know the list of required documents (Annexure 13.7.1 attached) by

keeping view the nature of the case.

In the meanwhile CR will joint investigate the case with client within 4 working

days. One extra working day will be required to compile the People™ internal

investigation report.

SD‐MIS will inform CR the list of required documents by ICS with in one working

day & CR will share the surveyor required document list with client in one

working day.



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Client will provide the required documents with in 7 working days.

CR will provide received documents to SD – MIS in one working day.

SD‐MIS will share the received documents with ICS with in one working day.

ICS will assess the received documents and if required any further document will

inform SD‐MIS with in 7 working days. And the same process from document

intimation to client to receipt will be followed.

ICS will compile the assessment report maximum in 30 working days & submit the

same to Insurance Company.

IC will review & release the check with in 7 working days if claim is accepted

otherwise IC will inform SD – MIS

SD‐MIS will arrange the payment to client with in two working days.


ii. Group Hospitalization Process

People™ is maintaining Group Hospitalization Insurance (GHI) for its clients. The ICs

are the one of the best companies with respect to panel hospital coverage, services and

cost. Usually it is discouraged to get treatment from non panel hospitals. But in case of

emergency and non availability of panel hospital in the area the employee can visit the

non panel and claim the expense. Following is the process will be followed to process

the GHI claim.

Employee will submit the claim form duly filled and signed along with original

bills to CR

CR will forward the received documents to SD‐MIS

SD‐MIS will copy all the documents for own record and enter the details in MIS &

forward to IC within one working day after receipt



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IC will analyze the claim according to GHI policy. If the claim is under the policy,

IC will dispatch the claim settlement cheque to SD‐MIS with in 21 working days.

In case of decline IC will inform SD‐MIS within 7 working days.

On receipt of cheque SD‐MIS will add its details in MIS and dispatch it to CR for

handing over to employee or directly dispatch to the employee on provision of

his/her dispatching address.

Please see process flow diagram of “Insurance Management” in appendix 13.8 & for

required document check list 13.8.1

iii. Group Life Process

People™ is maintaining Group Life Insurance (GLI) of all outsourced staff. In case of

sad demise of any employee the GLI claim will be lodged to IC. The following process

will be followed to settle the GLI claim.

CR will inform SD‐MIS about the death of employee containing date of death,

nature of death (accidental or natural), employee ID & address of his/her heir

SD‐MIS will intimate to IC with in one working day & add the claim details in MIS

IC will send the list of documents required (Annexure 13.9.1 attached) along with

physician statement and employer statement form

SD‐MIS will write a condolence letter on standard format to the heir mentioning

the required details for claim settlement & inform CR accordingly

CR will follow the completion of documents ASAP

After receipt of complete documents SD‐MIS will dispatch these documents to IC

with in one working day. And maintain the copies for own record & update the

MIS

IC will analyze the case and if accepted will release the cheque within 21 working

days. Otherwise inform SD‐MIS within 7 working days



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On receipt of cheque SD‐MIS will maintain a copy for own record and update the

MIS. The cheque will be forwarded to Finance department along with

acknowledgment email

SD‐MIS will demand the Succession Certificate from the legal heir issued under

succession act 1925

On receipt of succession certificate SD‐MIS will send its verification request to

verification department with in one working day

Verification department will take 7 working days for its verification

On receipt of verification department positive feed back SD‐MIS will prepare the

payment receipt as per Succession Certificate & send email to Finance department

to arrange the payment cheque against the legal heirs. On negative feed back the

same will be informed to CR & legal heirs

Finance department will arrange the cheque with in 3 working days

CR will arrange to handover the cheque & ensure to take the signature & thumb

impression of recipient on receipt along with copies of CNIC verified with original

CR will send the receipt along with copies of CNIC to SD‐MIS for its record




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3. SERVICE DELIVERY – CPU OPERATIONS

3.1 OVERVIEW

SD – CPU takes care of invoice processing, salary disbursement, gratuity/bonus

disbursement, etc. to all PPM & PEO staff. The purpose of this document is to keep SD

– CPU operations standardized. Any change in the procedure will be added in this

document and version will get revised and approved from the concerned authority.

This section of SOP document covers complete procedures of SD ‐ CPU starting from

information received from the client through CR, invoice processing & generation &

how to disburse of all types of payments, etc.

3.2 INVOICE GENERATION

To claim service charges and to pay salaries and other benefits to PPM & PEO

employees, we process and generate invoices for all of our clients. The invoice includes

the details of salaries, commission, incentives, bonus, gratuities, etc which are payable.

It also includes details of statutory benefits such as EOBI, Social Security, Income Tax,

Provident Fund, Gratuity and other benefits like GLI, CLI & GHI. People™ service

charges are also part of this invoice for providing the outsourcing services to its

different clients. The following steps are part of this invoice generation process:

MIS/STF received from CR for any new information which needs to be added or

amended in the employee’s master data of the particular client.

SD ‐ CPU process invoice based on the information received from client through

CR and initiate working on excel file

Import excel working file in PPM & PEO and generate an invoice number from the

system



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Two/three copies of invoice get printed, cover letter attach with each invoice &

forward it for authorization

Invoices are signed by the authorized signatory & one copy will be kept for

People™ record. SD ‐ CPU sends other copy of invoice directly to the client or

through CR and inform to CR via email.

If invoice gets returned due to any error by People™ or any update/change by the

client, IAR needs to be prepared and approved by a senior manager

File the IAR with the invoice as revised invoice with SD ‐ CPU & Finance so to

cater reconciliation purposes later on.

Again get two / three prints of revised invoice, signed & also get dumped one for

Finance record and other forward to the client. Previous copy of invoice will also

remain in the file & in system for the record purpose

Two full working days for MCB, HBL & PMCL and one full working day for all

other clients will be benchmark STAT for process of invoice generation & revise

invoice (if any amendment needed) will not take more than 4 hours

Query/delay in invoice generation will be resolved immediately in 2 working

hours and verbal /written warning will issue to responsible OE/SE as per HR

policy then an interchange in SD – CPU team may require before taking the final

step

Please see process flow diagram of “Invoice Generation” in appendix 13.10

3.3 PAYMENT DISBURSEMENT

All type of payments which can be made to the employee against any invoice will come

under this process. Following steps are part of the payment disbursement process:

Invoice payment received

Recheck invoice processed in Payroll system



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Check the Salary Register with final invoice

Print & dump soft copies of Salary Register, bank cheque # list, EFT, TI and Tax

Deduction Statements

Upload cheque batches in HSBCnet in this format “date‐clientname‐inv#‐location”

SE will send an email to team members of SD – CPU & Finance after uploading the

batch into HSBC for authorization. Hard copy of cheque # list should be

forwarded to the authorizers for signatures

Once it authorized, file the cheque # list with other particulars of the invoice

Enter the details of upload batch details in MS Excel file which will help Finance to

reconcile at the month end

Print Transfer Instructions and forward it to the authorize signatories for signing

Once it is authorized, forward the TI to the respective bank for EFT and file the

same with other particulars of the invoice.

Forward the soft copies of bank cheque # lists, TI & pay slips to CR

Update the cheque numbers in Payroll system upon receiving the details from CR,

HSBC or any other bank have been used to do EFT

GL posting of the invoice & payment disbursement

Hard copy of original GL vouchers should be forwarded to Finance after it has

been verified by SDs’ internal auditor.

Print the pay slips and dispatch it accordingly

All above documents mentioned which are printed for internal filling should be

initialed by the OE/SE

Recheck all the documents have been filed properly along with the cheque # list

Any change required after processing, IAR should be prepared and signed

accordingly



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Print & Dump revised reports and forwarded to the Client/CR without deleting

the previous reports

One full working day will be benchmark STAT for process of payment

disbursement. Payment that receives in 1st half of the day must be forwarded to

the bank for disbursement by COB and payment that receives in 2nd half will be

forwarded to the bank for disbursement by next days’ noon

Query/delay will be resolved in 2 working hours and verbal /written warning will

be issued to responsible OE/SE as per HR policy then an interchange in SD – CPU

team may require before taking the final step

Please see process flow diagram of “Payment Disbursement” in appendix 13.10

3.4 OUT OF POCKET PAYMENT – OOP

Any type of payment which is made to the employee in advance and will be claimed in

the upcoming invoice is called OOP. Following steps are part of the OOP payment

process:

Email from Country/Segment Head CR to Segment Head SD – CPU / Team Head

SD ‐ CPU for OOP payment to entertain client’s request

Authorized personal in SD – CPU approves the request and instructions of OOP

are forwarded to OE/SE

Request of OOP will be verify with internal record then upload the amount as

miscellaneous file & miscellaneous cheque

Enter the details in OOP register, get it signed by the authorized signatory & then

upload cheque on HSBCnet (Batch # format = date‐clientname‐OOP‐location)



forwarded to the authorizers for signatures



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Complete details of the upload batch in MS Excel for further reconciliation

Upon authorization, file the cheque # list

All above documents mentioned above and are printed as office copy should have

OE/SE initials

Claim the OOP payment in next coming invoice by default unless otherwise

requested by the client to claim it earlier or later through CR. Once OOP payment

is claimed, OE/SE enter the invoice number in OOP register & have it signed by

the internal auditor

Please see process flow diagram of “Out of Pocket Payment” in appendix 13.11

3.5 STOP PAYMENTS

3.5.1 STOP & REISSUE CHEQUES

In case of lost/cancelled cheques by the employee / client / CR and need to be reissued,

following are part of the stop & reissue cheques process

SD – CPU receives a request from the client / employee through CR for stop

payment

SE from SD ‐ CPU will put a stop cheque request in HSBCnet

SE will send an email to team members of SD – CPU & Finance after requesting

the stop instructions in HSBC for authorization. Hard copy of cheque # list should

be forwarded to the authorizers for signing

Enter the details of uploaded request for stop cheque in MS Excel file

Received a confirmation mail of stop payment by HSBCnet

While stop cheque request confirmed, same process will be need to reissue the

cheque. SE will upload the batch/company check of cheque in HSBCnet (Batch #

format = date‐clientname‐inv#‐location)

After that SE will send an email for authorization



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Enter the details of upload batch in MS Excel for reconciliation purposes

Hard copy of cheque # list should be forwarded to the authorizers for signatures

As cheque are authorized, file the cheque # list with the invoice particulars

All above documents mentioned and are printed as office copy should have OE/SE

initials

Update the new cheque # in payroll system

Please see process flow diagram of “Stop & Re‐Issue Cheque” in appendix 13.12

3.5.2 STOP CHEQUE

In case of lost/cancelled cheques by the employee or client and does not require to be

reissued, following are the steps of this process:

Request from the client / employee through CR for stop payment

SE from SD ‐ CPU will put a stop cheque request in HSBCnet

SE will send an email to team members of SD – CPU & Finance after requesting

the stop instructions in HSBC for authorization. Hard copy of cheque # list should

be forwarded to the authorizers for signing

OE/SE ‐ CPU will instruct finance for GL voucher posting

Enter the details of upload batch in MS Excel

Confirmation of the stop payment received by HSBCnet

All above documents mentioned are printed and office copy should have OE/SE

initials

Please see process flow diagram of “Stop Cheque” in appendix 13.12

3.6 GRATUITY PAYMENTS

3.6.1 THROUGH INVOICES

Once employee resigns from services and his/her gratuity is applicable, following are

the steps to be taken while processing gratuity:



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MIS/STF received from CR

Gratuity processing

Forward the working to C&A for verification i.e., documents completeness &

calculations, etc.

Inform CR about employees with missing documents

File the verified MIS

Prepare invoice and get invoice # from the system

Print complete invoice and forwarded directly to the client and inform CR through

email or telephone and then dump the same for Finance record

Invoice returned due to error/change, IAR should be prepared and signed

File the IAR with the revised invoice and other places as mentioned in the IAR

Print revised invoice and forwarded to the client and keep the previous invoice for

the record & dump the same for Finance record

Once invoice payment is received, update the system accordingly

Upload batch of cheques or company check in HSBCnet (Batch # format = date‐

clientname‐inv#‐location)



forwarded to the authorizers for signing

Enter the details of upload batch in MS Excel file for further reconciliation

Hard copy of cheque # list should be forwarded to the authorizers for signing

Upon authorization, file the cheque # list along with other particulars of the

invoice

Forward the soft copies of bank cheque # lists to CR

GL posting of the invoice by the relevant OE/SE

Update the cheque # in the Payroll system, upon receiving the details from CR



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All above documents mentioned which are printed for office use should be signed

by the OE/SE

Recheck if all the documents have been filed properly along with the check list

Any change required after processing, IAR should be prepared , signed and filed

accordingly

Print revised invoice and forwarded it direct to the client or through CR, CR will

keep the previous invoice for the record both in soft and hard form

Seven full working days after receiving the payment will be benchmark STATs for

process of gratuity through invoice

Please see process flow diagram of “Gratuity Payment” in appendix 13.13

3.6.2 ALREADY CLAIMED

Once the employee resigns from his/her services and eligible for gratuity, following

steps needs to be taken to disburse the gratuity:

MIS/STF received from CR & prepared by SD ‐ CPU to calculate gratuity

Forward the working to C&A for verification of documents completeness &

calculations, etc.

Verification of gratuity received from C&A

File the verified MIS

Forward the details to the management for approval of gratuity payment

Approval received from management

Upload batch of cheques in HSBCnet (Batch # format = date‐clientname‐gratuity‐

location)



forwarded to the authorizers for signing & requesting Finance for GL posting of

the gratuity payments



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Enter the details of upload batch in MS excel file for further reconciliation

Upon authorization file the cheque # list along with other particulars

Forward the soft copies of bank cheque # lists to CR

Update the cheque # in the Payroll system after receiving the details from CR

45 days after receiving resignation letter will be benchmark STAT for payment of

already claimed gratuities

Please see process flow diagram of “Gratuity Payment” in appendix 13.13



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4. SERVICE LEVEL AGREEMENTS

It is an internal contract that exists between the Client Relationships (Marketing &

Sales) and Service Delivery – CPU & MIS departments and designed to create a

common understanding about services, priorities and responsibilities of each party. The

issues mentioned below define levels that the service should meet, and escalations in

case of delay to meet the service level. The SLA covers a description of the provided

service nature, level of responsiveness, reliability of the service, service problems

reporting, problem response time, resolution, monitoring, service reporting, liabilities

on the service provider if promises were not met, etc.

STATs are benchmarked for service delivery between CR (M & S) and SD

Urgent requests may be dealt on priority but SD expects CR (M & S) to keep the

urgent requests on a level where these requests should not disturb regular work

queue

All STATs start upon receiving requests from CR (M & S) and end on dispatching

it to CR or client on behalf of CR. SD can only dispatch at COB regardless when

STATs ends during the day so CR needs to devise each client STATs accordingly

In case of any delay in SLA, CR (M & S) will communicate with liable AM SD – MIS or

Unit/Team Head SD – CPU via email &/or phone call

Note: In case any breach of this agreement, responsible personnel should be contacted

immediately. Contact information is attached in appendix 13.22



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5. AUDIT PROCESS

In order to produce good result at individual level, an internal audit of SD – MIS/CPU

regarding document management system that includes Employees’ Personal File, loose

documents, documents (both in hard & soft shape) and payroll processing system that

includes invoices and payment disbursement is conducted by an internal auditor on

weekly basis. The external audit is a surprise audit and conducted by the C & A on

monthly basis.

5.1 INTERNAL AUDIT BY SERVICE DELIVERY

Following are the steps of the internal audit process

Weekly DSR, MIS of employees’ documents, invoices and payment reports will be

provided to internal auditor for audit purpose

Each piece of paper & every document will be audited on a defined check list

Errors & missing files or / suggestion will be reported to the responsible OE/SE

through AM SD – MIS, Team Head SD – CPU & Segment Head IS & Service

Delivery

Please see process flow diagrams of “Service Delivery Internal Audit” in appendix 13.14

to 13.17

5.2 EXTERNAL AUDIT BY COMPLIANCE & AUDIT

Following are the steps of external audit process

Details requested by C&A which includes but not limited to Employees’ Personal

Files, Laserfiche® scanned file record, cabinets and their security locks,

STF/emails, invoices, cover letter of invoices, salary/bonus registers, Transfer

Instructions letters, Transfer Instructions details/bank cheque numbers, income

tax deductions statement, OOP register, etc.



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Details provided to C&A on priority basis during audit

Audit report forwarded to CEO/Directors / Segment Head IS & Service Delivery

for review and also to AM SD – MIS & Team Head SD CPU to take corrective

measures/actions



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6. REPORTING PROCESS

6.1 REPORTING CR & SD – MIS/CPU

It is expected that all the information received from client by CR will be relayed to SD –

MIS/CPU right away. All communication should be documented in the shape of email

so to have a record. After or before sending an email phone call can be placed but then

phone conversation needs to be documented in that email. The following protocol is

recommended to be followed while emailing from CR to SD – MIS/CPU and vice versa

for each client to have a smooth and error free operations:

6.1.1 FROM CR TO SD ‐ CPU

To: OE/SE – MIS/CPU

Cc: AM SD – MIS/Team Head SD – CPU

6.1.2 FROM SD – MIS/CPU TO CR

To: ECR/SECR

Cc: Team Head CR, Unit Head CR

If any issue needs to be escalated, the following protocol should be observed:

1st escalation

AM SD – MIS, Team Head SD – CPU, Segment Head CR

2nd escalation

Segment Head IS & SD, Regional/Segment Head CR, Country Head CR, Director, CEO



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6.2 REPORTING FINANCE & SD – MIS/CPU

Due to the nature of relationship in between Finance & SD – MIS/CPU, very clear and to

the point communication is required. All communication needs to be documented in

the shape of email for the record. The following protocol is recommended to be

followed while emailing from SD – MIS/CPU to Finance and vice versa for each client

and query to have a smooth and error free operations:

6.2.1 FROM SD – MIS/CPU TO FINANCE

To: AM Finance, Unit Head FR

Cc: Country Head Finance

6.2.2 FROM FINANCE TO SD – MIS/CPU

To: AM SD – MIS/Team Head SD – CPU

Cc: Segment Head IS & SD

1st escalation

AM SD – MIS/Team Head SD – CPU, Segment Head IS & SD, Country Head Finance

2nd escalation

Segment Head IS & SD, Country Head Finance, Director, CEO



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7. PROCEDURE FOR USER PROFILES/PASSWORDS MANAGEMENT

In order to set a high security level and to ensure the data security of each client, users

are restricted to access the data which are under their portfolio. Following procedure

should be used for managing user profiles and passwords:

HR initiates MIS form (MIS Form is attached in Appendix 13.18) upon joining of a

new employee and then immediate line manager of the user fills in this MIS Form

Manager/AM IT performs an administrative check on the employee’s MIS form for

whom profile management has been requested

If the request is for an operating system profile management, the Network

Engineer is assigned to carry out the task

If the request is for a business application software profile management, the task is

assigned to the respective administrative (in this case Team Head SD ‐ CPU) user

of that particular application, authorized by another administrative user

Team Head SD ‐ CPU is informed upon task fulfillment. IT Manager keeps a

record of all the profile requests

Users are accountable for all activity associated with their user ID and password.

All system‐level passwords (e.g., root, enable, NT admin, application

administration accounts, etc.) must be changed at least on quarterly basis.

All passwords must consist of a minimum of six (6) alphanumeric characters

All user level passwords (e.g., email, web, desktop computer, etc.) must be

changed at least on quarterly basis

Application user IDs are disabled after three (3) consecutive login fail attempts

Application user IDs are disabled after one (1) month of inactivity if not revoked

after resignation

Passwords must not be inserted into email messages or other forms of electronic

communication or discuss over the phone



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8. PROCEDURE FOR SOURCE CODE REVIEW

Following procedure is used for reviewing source code before the application is

deployed in production/live environment:

The purpose of this exercise is to validate the integrity of the source code with the

production system

After each major development, latest version of the source code is extracted and a

new application build is generated

This build is deployed on the contingency server for testing and parallel run

The same server may be used for performing the contingency test operation

Results and reports are matched and validated by the relevant staff

The contingency test operation report validates the correct results of the fresh

application software build, duly signed by the Team Head SD ‐ CPU/Segment

Head IS & SD



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9. PROCEDURE FOR SOFTWARE PROBLEM REPORTING

In order to make the system more reliable, feed back controls are important on every

level of processing. Following procedure is used for software problem reporting to the

software development team

SD – MIS/CPU, CR’s representative fills in a Software Problem Report Form

(Appendix 13.19) for all problems relating to the licensed software which includes

People™ payroll, Laserfiche®, etc. If CR’s representative does not fill in the form

and reports the problem via email or any other means, IT team may fills in the

Software Problem Report Form on CR’s behalf.

AM SD – MIS/Team Head SD – CPU assigns a problem report number

AM SD – MIS/Team Head SD – CPU requests IT, software development team or

vendor to assign a support person to investigate the problem

The support personnel enter the resolution comment and has it signed off by the

problem reporting person

AM SD – MIS/Team Head SD – CPU keeps a record of all the change requests and

their resolutions



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10. PROCEDURE FOR HARDWARE PROBLEM REPORTING

Following procedure is used for hardware problem reporting:

Users fill in a Hardware Problem Report Form (Appendix 13.20) in case any

hardware problems are detected and send it to the on duty Network Engineer

After receiving the form, the on duty Network Engineer checks the problem and

resolves it and writes his remarks for future reference

IT keeps a record of all the Hardware Problem Report Forms



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11. PROCEDURE FOR ELECTRONIC/PAPER MEDIA DISPOSAL

Following procedure is used to dispose of electronic and paper used in SD – MIS/CPU:

Discarded reports or papers are shredded using shredder on day to day basis as

and when required

Electronic media i.e., backup cartridges, CD, DVD and floppy disks, if any, are

discarded/shredded after the period of 6 months from the day of its first use

For tape media the tape reel is pulled out of the cartridge and cut into the pieces to

avoid any misuse. USB drives cut into pieces before being discarded.



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12. PROCEDURE FOR BACKUP AND RESTORATION

Following procedures will be used for backups and restoration by IT:

Biweekly software backups of applications, Master Data, Payroll, GL, & source

codes, etc.

Weekly backups of manual excel data files

Weekly email backups by the user & IT as well

Restoration of data upon data loss by IT



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13. APPENDICES

13.1 MIS OPERATIONS PROCESS FLOW



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13.2 CNIC VERIFICATION (VERISYS) PROCESS FLOW



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13.3 CNIC VERIFICATION (BULK) PROCESS FLOW



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13.4 MIS FORM FOR CNIC VERIFICATION



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13.5 DOCUMENT VERIFICATION PROCESS FLOW



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13.6 INSURANCE MANAGEMENT PROCESS FLOW



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13.7 INSURANCE CLAIM (CL, 3RD PARTY, CIT) PROCESS FLOW



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13.7.1 DOCUMENT CHECK LIST FOR (CL, 3RD PARTY & CIT) CLAIM PROCESS



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13.8 INSURANCE CLAIM (GHI) PROCESS FLOW

13.8.1 DOCUMENT CHECK LIST FOR (GHI) CLAIM PROCESS



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13.9 INSURANCE CLAIM (GLI) PROCESS FLOW



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13.9.1 DOCUMENT CHECK LIST FOR (GLI) CLAIM PROCESS



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13.10 SALARY & INVOICE PREPARATION PROCESS FLOW



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13.11 OUT OF POCKET PAYMENT PROCESS FLOW



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13.12 STOP & RE‐ISSUE CHEQUE PROCESS FLOW



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13.13 GRATUITY PAYMENT PROCESS FLOW



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13.14 SD – MIS AUDIT PROCESS FLOW



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13.15 INVOICE/PAYMENT AUDIT PROCESS FLOW



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13.16 GL POSTING AUDIT PROCESS FLOW



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13.17 OOP PAYMENT AUDIT PROCESS FLOW



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13.18 MIS FORM



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13.19 SOFTWARE PROBLEM REPORT FORM



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13.20 HARDWARE PROBLEM REPORTING FORM



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13.21 CONTENTS OF RECRUITMENT PACK



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13.22 CONTACT INFORMATION

For the purpose of this Standard Operating Procedures/Service Level Agreements,

following contact information shall be used: