2. Rules and Regulations
• There are a number of laws and regulations that administration has to enforce
through out the organization.
• Without a clear understanding of why certain requirements/restrictions are in
place it can create a tense dichotomy between programs and administration.
• Michael Scott vs. Toby Flenderson
3. What is an Audit?
• An audit is an official inspection of an organization’s accounts and associated
documents and files to ensure the organization is adhering to its polices and
procedures and applicable laws and regulations.
• The GPTCHB audit is conducted annually by an independent auditor.
• Auditors provide an opinion as to whether financial statements are presented
fairly and accurately.
• Test internal controls which is a process to control risk to the organization.
4. Why is a Successful Audit Important?
• Dings in audits can prevent future funding
• Poor audits be costly to the organization
• Audits ensure consistency and reliability throughout the organization
5. Finance Audit Requirements
• The Accounting Policies and Procedures
manual was designed primary for the
guidance of the finance staff and to
standardize procedures that meet the
requirements of internal controls and
reporting requirements.
• The audit ensures finance is adhering to the
accounting policies and procedures.
6. Purchasing
• A purchase can only be made after it has gone through the procurement
process and a purchase order has been issued:
• Purchase request with manager’s signature and quote
• 3 quotes for unit costs over $1,000 or sole source justification
• Disbarred vendor test
• Additional signatures if over $1,000 and over $25,000
• Verification of funds available and purchase allowable
• Attach required paperwork: W-9/quote/agenda/contract
7. Accounts Payable
An invoice can be paid when the following
criteria are met:
• Satisfactory evidence of goods received-
packing slip with initials or email
• Invoice received
• Justification if the invoice exceeds the PO
amount by $50
• Voucher has been approved by the finance
staff
• Funds are available
8. Travel
• Travel advance-submit to finance 10 days prior to travel
• Meals and lodging paid at maximum per diem rates for CONUS
• Standard vs. POV mileage rate
• Airfare booked 14 days in advance at coach fare
• Car rental policy is mid-size or requires a justification
• Consultant travel is by reimbursement unless approved by CAO
9. Travel Continued
• Settle up 3 days after travel. Employees are not eligible for an advance if there
is outstanding travel
• Reimbursement by an outside agency-sign check over to GPTCHB
10. HR Audit Requirements
• HR is required to be compliant with various laws and regulations.
• Regulations – enforced by an administrative agency, often enforced like the law
• Laws – passed by the U.S. Congress or state legislatures
• In an audit, employee files are inspected to ensure appropriate documentation is
retained relative to each employee.
• Auditors also inspect to ensure documentation (files, timesheets, travel, etc.) is
in line with organization policies and procedures along with state and federal
laws and regulations.
11. Employee Files
• Each employee has between five to seven employee files including:
1. General personnel file
2. Medical file
3. Background check file
4. Form W-4 file
5. Form I-9
6. Accident and illness
7. Discipline/investigation
12. General Personnel File
• General personnel files do not contain confidential personal information (i.e. birth
date, social security number, medical information).
• Personnel Action Notices (PANs) and performance evaluations
• Employment information (position descriptions, employment application, etc.)
• Salary deferral forms (retirement and benefits)
• Certificates/training
• Miscellaneous
13. General Personnel File Cont.
• PAN’s – indicate any change in an employee’s position (title, pay, funding,
etc.).
• Auditors inspect to see if PAN’s are up-to-date and accurately reflect the employee’s
current position, funding source, etc.
• Performance Evaluations – evaluate an employee’s performance during their
introductory/review period and annually.
• Auditors look to ensure evaluations are done timely, align with PAN’s and fairly and
objectively evaluation performance.
14. General Personnel File Cont.
• Position Descriptions – outline employee’s essential functions and job
expectations.
• Auditors want to see that these are current (updated at least annually) and accurately
reflect the employees job.
• Offer Letter – outlines the terms of employment.
• Auditors inspect to ensure signatures are affixed and the letter accurately represents
the employee’s position.
15. General Personnel File Cont.
• Application and Resume – show consistency in the hiring process.
• Auditors ensure applications are in line with laws and regulations and similar
documents are retained for all employees.
• Policy Forms (New Hire Orientation, Certification, Confidentiality, Sexual
Harassment, Drug & Alcohol, Physical Activity)
• These show auditors that all employees are educated regarding organizational
polices, procedures, and standard practice.
16. General Personnel File Cont.
• Deduction Forms – retirement and health insurance.
• Do not provide confidential information, but allow finance and HR to identify which
benefits the employee selected and ensure appropriate salary deferrals are done.
• Auditors look to see that all eligible employees complete the forms (even if waiving
participation) to ensure all employees are educated on benefit opportunities and have
the opportunity to participate.
• Eligibility requirements are required upon setting up a benefit structure.
17. General Personnel File Cont.
• Trainings and Certificates – Examples include HIPAA, CITI, Fred Pryor.
• Auditors want to see that all employees participate in mandatory trainings.
• Show continuous training and education.
• Miscellaneous – any item relevant to the employee that does not contain
confidential information (flex schedules, educational leave forms, etc.)
18. Medical File
• Confidential
• Contains insurance applications, doctors notes, etc.
• Kept separate from all other employee files.
19. Form I-9
• Form I-9 verifies that employees are eligible to work within the U.S.
• Must be filled out correctly or subject to fines.
• Employee must complete the personal information section on the first day of
employment
• Document verification must occur within the first three days of employment.
• Retention: must keep until one year after hire date or three years after date of
separation; whichever is later.
20. Form W-4
• All W-4’s are kept in their
own folder separate from
other employee files.
• Form W-4 is used to
withhold the proper
amount of federal income
tax from your paycheck.
21. Illness and Accident
• All information regarding occupational illnesses and injuries are contained in
the illness and accident folder.
• May include worker’s compensation forms, doctors notes, accident reports, etc.
• Workers compensation/incident reports are kept with Debee, Staci, Sunny and HR.
They are also available on the current employee page of the website.
22. Discipline and Investigations
• All information regarding employee discipline/investigations are contained in
this file.
• May include verbal warnings, written warnings, performance improvement plans,
investigation notes, etc.
• Disciplinary action should adhere to the structure outlined in the personnel policies
and procedures.
23. Background Check File
• Background checks are done
upon hire and are retained in
the background check file.
• Confidential and kept separate
from all other files.
24. Interview Materials
• Interview materials must be consistent and retained by HR.
• Includes:
• Applications, resumes and cover letters
• Position description
• Interview questions
• Reference checks
25. Interview Materials
• Interview questions should generally
not address the following topics:
• Other names used
• Birthplace
• Religion
• Age
• Race
• When an applicant graduated
• Citizenship
• Relatives
• Military discharge
• Health and disability
26. Timesheets
HR & Finance Requirement
• Timesheets certify the hours worked of an employee.
• Must be accurate and have all appropriate paperwork attached.
• Attached paperwork shows that we are being compliant with our policies and
procedures.
• Signatures certify that everything is correct.
• Prior approval for OT
27. Timesheets Continued
HR & Finance Requirement
• Co-funded timesheets and single
objective forms
• Holidays and admin leave for off-
site employees need to be attached
• Administrative time approved by
CEO or tribe only
28. Types of Employees & Independent Contractors
• Non-Exempt Employees
• Paid on an hourly basis.
• Entitled to overtime pay for any hours worked exceeding 40 hours in a workweek
(GPTCHB’s workweek is defined as Sunday-Saturday).
• GPTCHB non-exempt employees may not work more than 40 hours per workweek
unless overtime pay is approved in advance.
29. Types of Employees & Independent Contractors
Cont.
• Exempt Employees
• Not subject to overtime provisions of the FLSA
• Different types of exempt classifications including executive, administrative,
professional, sales
• All exempt classifications must meet a combination of criteria usually involving
salary, nature of work, discretion, supervisory duties, etc.
30. Types of Employees & Independent Contractors
• Independent Contractor
• Not an employee of the health board, but hired to perform a project.
• All GPTCHB contracts are required to be routed appropriately. Approval from
finance and/or HR for employee or contractor classifications is needed.
32. Safety Review
• All employees are required to read and adhere by the GPTCHB Employee
Safety Handbook and Emergency Action Plan.
• Tips to reduce hazards:
• Do not leave boxes or items in the hallway or doorways.
• No not use any faulty or broken equipment.
• Avoid lifting materials that you are not physically able to or that may cause a strain
of any type.
• Always keep your work area clean and orderly.
33. Safety Review Cont.
• Do not have candles, space heaters or halogen lamps in your office.
• Do not attempt to repair defective wiring or other electrical equipment.
• Do not use faulty or makeshift ladders.
• If something looks unsafe or you are in doubt ask.
• Always report a workplace illness or injury to HR immediately.
Good housekeeping habits are the best way to avoid occupational illness and
injury.
34. Safety Review Cont.
• Office Ergonomics
• Setting up your workstation to comfortably accommodate your work is critical to
preventing lifelong injuries.
• Review of office ergonomics
35. It’s a team effort.
• Passing an audit successfully requires effort from everyone.
• Closely inspect any document you are required to sign.
• Ensure everything in the document is accurate, timely and relevant.
• When asked for assistance in creating a document, take your time to ensure it is done
correctly.
• Always make sure you and your employees are being compliant with polices.
36. Learning Assessment
• Break into groups of five.
• Teams may work together to complete the
compliance quiz.
• When your team is done with the quiz tally up
the scores.
• The team or teams with the highest score will
receive prizes.
37. GREAT PLAINS TRIBAL CHAIRMEN’S HEALTH BOARD (GPTCHB)
1770 Rand Road
Rapid City, SD 57702
Phone: 605.721.1922
Toll Free: 1.800.745.3466
Fax: 605.721.1932
Email: info@gptchb.org
Thank you