OHUG Benefits Audit Workbench Presentation

1. Put your company logo here
OHUG Global Conference
Las Vegas, NV
June 14 – 18, 2009
Benefits Auditing

2. • Highlight some of the challenges introduced by
Oracle Advanced Benefits
• Highlight the need and importance of
implementing auditing controls
• Highlight the audits and controls Dunkin’ Brands,
Inc. has implemented
• Demonstrate a custom tool developed by
Dunkin’ Brands, Inc.
Objectives

3. • Sean Fielding sean.fielding@dunkinbrands.com
o IT Manager, Business Process Integration Services
• Mike Metcalf
michael.s.metcalf@gmail.com
o Senior HRIS Analyst
• Karen Baggett
karen.baggett@dunkinbrands.com
o Senior HRIS Analyst
Presenters

4. Dunkin’ Brands, Inc.

5. Environment
• Oracle 11.5.10.2 (Implemented Nov-2007)
o Human Resources
o Employee Self-Service
o Manager Self-Service
o Advanced Benefits
o iRecruitement
o Talent Management
o Compensation Workbench
o Time and Labor
o iLearning
o Discoverer 4i
• ADP Enterprise (Implemented Nov-2007)
o ADP Connection

6. Initial Challenges
New to HRMS Suite of
Oracle Applications
Implemented “Big Bang”
Tightly Integrated
Applications
Heavily reliant on
implementation partners
Controls not in place

7. Typical Benefits Process

8. Life Without Auditing
• Billing Statements
• Employees identified issues
Paycheck
Discrepancies
Denial of Coverage
• Impact not evaluated

9. Audit Categories
Adjustments
Configurations
LifeEvents
Vendors
Backfeed
Deductions
“that’s a lotta fish to fry”

10. Configuration Auditing
• Validate Benefit plans and rates are inline with
business requirements
o Detailed test plans
o Yearly review of configuration
Configurations

11. Life Event Auditing
• Validate Life Events
 Validate Collapsing Rules
 Review Backed out Life Events
 Audit Custom processes
• Validate Participation Process
 Review errors
 Review results
• Examples
 Backed out Life Events during Open
Enrollment period
LifeEvents

12. VendorAuditing
• Validate outbound data accuracy
o Periodic review of interfaces
• Validate inbound data accuracy
o checksums
o Hash totals
o Periodic report comparisons
• Validate Billing Statements
• Validate Interface errors
o Error handling procedures
Vendors

13. Backfeed Auditing
• Compare backfeed inbound file against standard ADP
reports
• Compare 3rd
Party Payroll Tables tie against Payroll
results
o Use checksums and totals on interface files
• Validate and resolve process errors
Backfeed

14. Deduction/Earning Auditing
• Validate elections are accurately reflected in
employee paychecks
• Validate fast formulas are processing correctly
• ADP Connection issues
Dedu ctio
ns

15. Adjustment Auditing
• Validate financial controls
o Perform a period review of the adjustments and
supporting controls
• SOX compliance
• Traceability
Ad
just
m
ents

16. Why a Tool?
• Catch all
• Become proactive
• SOX Compliance/Financial Controls
• Transparency
• Usability
• Increase paycheck accuracy
• Decrease Employee Issues

17. Solution
Developed a custom Benefits Audit
Workbench (BAW) tool.
• Initial focus on deduction/earnings
o Based on a initial review of our exposure, this area
was deemed the most problematic.
• Provide Benefits with decision making data
o Benefit resources spend their time researching
issues rather than gathering information.

18. Benefits of Tool
• Q2 2008
o Project initiated for analysis of the deduction/earnings
o Individual reporting implemented
• Q2 2009
o BAW1.0 Introduced
o Identified a number of issues including
 Bugs in the delivered Oracle ADP Views which required
patches to be applied
 Rate calculation issues
 Bugs in Fast Formulas
 Bug in the rounding of the first deduction
 Mid-year FSA elections
• In the Pipeline
o BAW2.0
 Enhanced look and feel, improved usability
 Additional functionality for traceability and compliance around
adjustments

19. Benefits Audit Workbench
• Concurrent program scheduled on a weekly
basis
o Produces a benefits snapshot by employee and
payroll period dimensions.
• Self-Service Web Page
o Provides a user workbench for reviewing and
addressing issues.

20. Initial Rules
• Flexible Spending Account Trending
• Deduction Trending
• Missing Initial Payment

21. FSA Trending Rule
• Identifies employee FSA deductions that are trending
towards a total payroll contribution amount that is
different from the employee’s coverage amount.
These are identified by the following calculation:
• Trending = Benefit Coverage Amount – (Actual YTD
Payroll Deductions + Scheduled Payroll Deductions)
• Common Causes
o Mid Year elections
o Fast Formulas incorrectly calculates the deduction schedule

22. Deduction Trending Rule
• Identifies employee deductions where the actual
payroll contribution amount does not equal the
expected payroll contribution amount for the year.
These are identified by the following calculation:
• Trending = Actual YTD Payroll Deductions - Expected
YTD Payroll Deductions
• Common Causes
o Fast Formula rounding issues
o ADP View Date issues

23. Missing Initial Payment
• For benefits, such as Medical and Dental, where
coverage starts on the 1st of the next month, a missed
payment can occur when deductions start in a pay
period after the coverage period.
• Forexample:
Hired
1/6/2009
Election
1/21/2009
Coverage
Start
2/1/2009
30 Day window to
elect coverage
Life Event
Closed
2/6/2009
Deduction
Start
2/15/2009
Pay Period 4 Pay Period 5
Deduction payment
never taken

24. Demonstration
• Core Functionality
• Deduction Trending Example
• FSA Trending Example
• Missing Payment Example
• Adjustments Example

25. Questions