HR Audits go live!

1. HR AUDITING GOES
LIVE!
18
February
2015
By
Chris3ne
Botha

2. 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)

3. 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

4. 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

5. 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

6. 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?

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

8. 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

9. Ø Impartiality
Ø Competence
Ø Responsibility
Ø Openness
Ø Confidentiality
Ø Responsiveness to complaints
Ø Professional integrity
Core Values of the SABPP Audit Brand

10. Certification Process for Auditors
CPD
Pre-selection
Criteria
Training and
Exams
Reference Checks
& 360° Evaluation
Participate in
Audits &
Certification

11. 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

12. 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

13. Our Auditors
Alicia
Singh Jan
Prinsloo Marlain
Polovin Penny
Abbott
Anthea
Saffy Joan
Stanbridge Marsha
Pieterse Raun
Smythe
At
Strydom John
Nkwana Mbulelo
Khonjwayo Sabelo
Plaatjie
Bonnie
Johansen John
Paterson Michael
Glensor Sandy
Lana
Ho
Hip
Brett
Walker Judy
Norris Mmalefu
Manoto Shamila
Singh
Christine
Botha Kate
Dikgale
Freeman Moleko
Rannona Sindiswa
Maseko
Corlia
Peters Katrina
Sauls Moshekoa
Sekhuto Siphiwe
Ndwalaza
Danie
Swanepoel Kgomotso
Mphahlele Natasha
Carstens Sithabiso
Mabaso
Dawid
Swart Leane
Breedt-­‐Maree Natasha
Rudy Sivaan
Marie
Dennis
Coetzee Leanne
Maree Nico
Teledimo Sivapragasen
Chetty
Dewald
van
der
Schyff Lomkhosi
Magagula Nimee
Dhuloo Suran
Moodley
Elizabeth
Warren Lucas
Bornman Nombasa
Mhlati-­‐Musene Thapelo
Motloung
Elsabé
Bell Lynn
Roux Nthabiseng
Lebea Thys
Viljoen
Fienie
van
Rensburg Lynne
Gamsu Pat
Naves-­‐Shongwe Tracy
Harper
Frank
de
Beer Manie
Roodt Pat
Smythe Xolani
Mawande
Gugulethu
Madlala Maphutha
Diaz Paul
Krige Yendor
R
Felgate
Hazel
Hall Marius
Jacobs Paula
Teigao Zamasishi
Madlala

14. 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

15. 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

16. ► 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

17. SABPP Audit Certificate

18. ► 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

19. 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

20. 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

21. Telesure makes world history
Introducing
Kholeka Ngubeni-Henderson
Executive Head of Human Resources