AUDIT AND ASSURANCE SERVICES AUDIT REPORT …HR+Recruitment+Report3555_1800.pdf · AUDIT AND...
Transcript of AUDIT AND ASSURANCE SERVICES AUDIT REPORT …HR+Recruitment+Report3555_1800.pdf · AUDIT AND...
AUDIT AND ASSURANCE SERVICES AUDIT REPORT
Subject:
Audit of Recruitment & Selection at HQ Calton House
Audit ref/date of report:
xx/x/xxxx
Auditor:
Adam Quin
Overall conclusion:
Limited Assurance
DISTRIBUTION:
For action: For information:
Director Corporate Services: Catherine Topley Chief Executive
Head of Human Resources : Janice Barclay Director of Operations
Director of Strategy and Innovation
Risk Monitoring & Audit Committee
CONTENTS
1
Background 1
2
Objectives 1
3
Findings 2 - 12
4
Good Practice 12
5 Audit opinion
12
6
Audit findings and management responses 13 - 17
Annex A
Audit and Assurance Reporting Policy 18
Annex B
Audit scope and objectives 19 - 22
Report issued by: G Allan
Head of Audit & Assurance
xxxx xxxx xxxxxx
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
1.
AUDIT OF RECRUITMENT & SELECTION AT HQ
1. BACKGROUND
This review of Recruitment and Selection procedures at SPS Headquarters was commissioned at
the request of the Chief Executive. This audit review took place during February 2015. The audit
we have undertaken is a review of the SPS controls and processes for staff recruitment,
promotion, regrading, vacancy filling, the use of consultants and secondments and temporary
recruited personnel and all job evaluation processes for Headquarters SPS. The detailed scope
and objectives is attached as Annex B. Audit findings are detailed at Section 3 and audit
assessment at Section 5. The Management responses to the recommendations are in section 6.
2. OBJECTIVES
2.1 Source of review: Request from the Chief Executive to review the process of job evaluation
and recruitment and selection for Calton House Staff during the period xxxx xxxxx xxxx to
xxxxxxxxxxxx xxxxx .
2.1.1 Main Objective:
The purpose of this audit is to provide assurance to the Chief Executive, the SPS Advisory Board,
RMAC and other major stakeholders that the processes for promotion, re-grading, vacancy
filling, the use of consultants, secondments and temporary recruited personnel and all job
evaluation processes for Headquarters Calton House have been soundly and correctly followed
for the period xxx xxxxxx xx to xxxxxxxxxxxx xx. Assurance is also sought that the recruitment and
selection processes used during this period were transparent, relevant, and fair and that
necessary approvals and authorisations were granted at the appropriate levels.
2.2 Control framework:
At a corporate level, SPS has policies and procedures in place which should ensure compliance
with sound recruitment and selection criteria. There should be clear management accountability
for all vacancy approvals with business cases compiled and budgets approved. There should be a
compelling job evaluation stating the job purpose, key responsibilities and selection processes.
There should also be a mechanism to provide assurance that all applications have adhered to SPS
policy and guidelines, the overarching principles of the Civil Service Management Code and the
Civil Service Commission Recruitment Principles, current legislation and are evidenced with
appropriate approval. There are processes for monitoring security information and document
retention.
2.3 Risk assessment:
Keys risks were identified as:
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
2.
• Formal approval process for SPS recruitment and selection are not kept current.
This could lead to a lack of control in recruiting the right personnel, increasing the
risk of damage to SPS reputation.
• Industrial relations are harmed due to Management not following agreed policies,
procedures and guidelines for job evaluation, recruitment and selection.
• SPS recruitment and selection policies and processes do not adhere to current UK
and EU legislation. This could lead to financial loss and reputational damage to
SPS.
• SPS job evaluation processes are not clearly defined; therefore they do not
maintain business focus and may not be appropriate in all cases, leading to failure
to meet stated organisational objectives.
3. FINDINGS
At the request of the Chief Executive, we have undertaken a review of the controls and processes
for staff recruitment and selection. Risks associated with recruitment and selection represent an
important area for any organisation. When recruiting staff, SPS must demonstrate a fair and open
procedure to ensure that there is a clear and consistent process in place for selection and that all
potential candidates are treated in an equal and fair manner, in line with the Civil Service
Recruitment Principles and SPS Procedures.
The Director of Corporate Services and Head of Human Resources has overall responsibility for
recruitment and selection within SPS.
In the financial year 2014/15, there were 28 appointments made at HQ. There are xx appointments
via Agency Framework Agreements. Currently, there are a total of 320 personnel at Headquarters.
There is no complement for Headquarters staffing.
3.1 Control Environment.
Testing was carried out against the SPS recruitment and selection guidance which is based on the
Civil Service Commission Recruitment Principles. The legal requirement is for selection for
appointment to the Civil Service to be made on merit on the basis of fair and open competition.
All three elements have to be met for the appointment to be lawful. Whilst we note the difference
between CSCRP and SPS Procedures there is a requirement to demonstrate fairness, openness and
accountability in all recruitment.
3.2 Control Activity:
SPS recruitment and selection is managed by the Human Resources Function from two different
locations, one at SPS College and the other at Headquarters Calton House, each with their own
responsibilities for overseeing all Headquarters staffing resources. Both teams deal with a large
variety of recruitment requirements, all of which are not covered in the scope of this audit. The
HQ team is responsible for recruiting and selection of grades B to D, including ensuring jobs are
subject to evaluation, and for temporary appointments, while the College team is responsible for
recruiting grades E to I and specialist recruitment. The Employee Relations & Reward Team is
responsible for the operation and management of the job evaluation process which is implemented
through a job evaluation panel that includes TUS representation. The recruitment and selection
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
3.
teams at both locations carry out a wide range of responsibilities for the administration of all
recruitment campaigns. We were informed that since 1st April 2014, there have been 99
recruitment campaigns. This is a considerable amount of work and data which needs to be
assessed and controlled and can include job design, vacancy identification, business cases and
budgetary approval. We were informed that all interview panel members are trained in Interview
Techniques and during the period covered by this audit, 160 staff has undergone this training.
There are comprehensive procedural guidelines; with external and internal process flowcharts
which set out the stages for all recruitment campaigns and we are satisfied that these are firmly
embedded. These are supported partly by the Applicant Tracking System (ATS) which provides a
central location and database for SPS recruitment efforts, ATS allows the resourcing teams to
streamline the talent acquisition process and simplify applicant tracking onto one system. Data is
collected from internal and external applications via the ATS front-end, located on the SPS
Intranet and website or is extracted and uploaded from applicants on job boards. Only permanent
posts are recorded in full on the ATS system. We were informed that temporary posts,
development posts and secondments are not always recorded, if at all. We note that this was
deliberate SPS Policy however; there still remains a requirement to have adequate control
measures as stated in 3.1 above. We were also informed that there is a working group looking at
enhancing the current ATS system to incorporate all types of vacancies. We would like to see this
expedited to provide additional assurance for all recruitment in SPS. The ATS system allows the
team to streamline processes, engage the right candidates, and monitor key metrics. The data held
within ATS, is predominantly personal data. We were satisfied that this data is tightly controlled
and access to the online recruitment live site is strictly managed by HR for HR. The recording of
all vacancies on the ATS system would be beneficial as data management could be improved and
it also, provides assurance that progression gateways for each recruitment campaign are being
fully met. The system allows the team to monitor and control these effectively. As previously
stated, the current ATS system does not cater for development posts, secondments and temporary
vacancies and we feel that this is a weakness as it allows some “off system” recruitment to be
progressed with limited internal control measures.
Recommendation 1: The HR Function should expedite the ATS project to enhance the system to
ensure that where possible, records for recruitment are properly progressed in line with the Civil
Service Recruitment Principles and SPS procedures and can demonstrate fairness, openness and
accountability within our legal requirements.
Records for all recruitment campaigns must be retained for 24 months from the end of the
campaign (on-line records are archived automatically). For fixed term and short term contracts,
the advertisement and supporting documents must be retained for the duration of the appointment.
There is no centralised advertising budget for roles advertised for HQ. Budget provision is agreed
with the recruiting manager prior to the advertising strategy being agreed. A member of the
Resourcing Team will liaise with recognised advertising agencies to agree publications and costs.
This is then shared with the recruiting manager who would then authorise the spend. This
authority is crucial to progressing to recruit.
All recruitment folders and career folders are held securely at SPS Headquarters Calton House.
There is a process for authorised personnel to check out career and recruitment case files which is
in the form of a spreadsheet for each. We were additionally informed during our audit that a
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
4.
career file had gone missing. To date, it has not been found. This is a security information breach
which has now been officially reported after prompting by AAU. The system which operates is a
spreadsheet where the recipient’s name is recorded on the spreadsheet on receipt and the entry is
then deleted when the file is returned. Staff informed us that the removal of files is limited and
that the recording system is not used. These records can assist with the detection as well as
prevention in relation to instances of the loss of critical data which has been highlighted to us
during the audit and these records should be retained. We were informed and shown a book which
was a new addition to the process which records the movement of files. However, the recording
system we were shown was not robust enough to be of assistance as it did not receive a signature
for the file being removed and there was no check of the file contents upon its return. This process
should be reviewed.
Recommendation 2: The HR Function should review their case file sign out and recording
process and introduce a sign out procedure which records and tracks the access to case files and
provides a record of monitoring for security and assurance purposes.
In all of the cases we reviewed, there were no checklists to provide assurance that the correct
documents were enclosed or to state documents were missing from the file. We did have some
documents reported missing to us from the recruitment files during our audit.
Recommendation 3: All recruitment case files should be itemised using a checklist against the
status flowcharts to ensure adherence to process and to support self and internal auditing.
There was no Relationship Declaration in any of the recruitment case files which we reviewed.
We were informed that this was completed on an exception basis and when we asked to see if any
declarations had been completed, we were informed that there was no record of any in any of the
files either at HQ or at SPSC. The introduction of such a form would assist in eliminating any real
or perceived unequal treatment or conflict of interest occurring throughout the recruitment process
or within working relationships. This would be relevant in situations where a member of the
shortlisting or interviewing panel has a potential conflict of interest because of a personal, family,
financial or other relationship with applicants/candidates. This matter must be raised with the
Resourcing Team. We have seen no evidence of this during our audit despite its mention in the
recruiting assurance visit checklist template.
Recommendation 4: A recruitment declaration for panel members should be considered and
added to the recruitment procedures to assist with full transparency of the process.
We had occasion to sample 20 of the recruitment case files, our sample cut across all three
Directorates namely, Corporate Services, Operations Directorate, Strategy & Innovation and also
the Chief Executive’s Office. We found the following exceptions in the samples we reviewed:
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
5.
xxxxxxxxxxxxxxxx Temporary Role (Case No xx not recorded on the ATS system)
There was no business case for this role and no copy of the authority to recruit in the case file.
However, there is still a requirement for a business case and relevant authority to be recorded
against the file as stated in the recruitment guidelines. See recommendation 3.
Recommendation 5: A review of all case files should take place to ensure a relevant business
case with signatory authorisation against budget is documented, valid and intact. Verbal
agreements should always be supported by documentary evidence to ensure due process.
Furthermore, this case reported evidence on xxxxxxxxxxxxxxxx who had applied for the post.
The sift marking grids were completed on the xxxxxxxxxxxxxxxxxxx and there xxxxxxxx
xxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. There was no copy of the
notification to the unsuccessful xxxxxxxxxxx held on file. See Recommendation 3.
The xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx put forward for interview panel which was held on
xxxx xxxxxxxxx xxxx. (This is less than xxxxxxxxxxxx since the sift occurred.) SPS Recruitment
guidance states that five days should elapse to allow for any appeals following the sift process. In
addition, it would also allow candidates equal preparation time for the impending
interview/assessment. This did not occur. Additionally, under the guidelines, there is no appeal
after the initial sift process and we were informed by HR Staff that for temporary posts, there is no
appeal process, (this is not written anywhere in the guidance and appears to be an unwritten rule.)
There is no laid down process or guidance for the recruitment of a temporary role and it is very
much at the discretion of the manager. However, custom and practice is that we follow the
principles of the Civil Service Recruitment Principles i.e. the role is advertised (in an appropriate
way, reflective of the role and length of time), there is an assessment exercise of the applicant
pool and that the final outcome can be justified. Open and fair are the guiding principles.
Recommendation 6: The principles of fairness, openness and accountability should be applied
and recorded in all our internal recruiting processes including temporary posts, development posts
and secondments.
The Sift marking grids in this case were all scored; comments adjacent to the scores were not
recorded and there was a change to one of the scores from a 4 to a 3 marking which was amended
but with no justification or comment to support the change. In addition the change itself had not
been signed, which is good practice for official document amendments. The Interview Grid
marking record xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx marked for one essential criterion and
xxxxxxxxxxxxxxxxxxxxxxxxx scored. The remainder of the desirable criteria had been recorded
and all were scored complete with comments.
In this particular case, we observed it had been dealt with consistently with the exception of the
scoring error change and the comments to support the essential criteria but no scoring was made
against the comments. The decision to xxxxxxxxxxxxxxx interview leaves little or no time for
candidate preparation. The CSC recruitment guidance is clear about the recruitment being open
and giving reasonable access to information about the job. The lack of preparation time in this
case could be questioned. There are copious notes on the desirable criteria recorded against
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
6.
xxxxxx candidates. Again, we are not totally convinced from the evidence we were provided in
this case that it is an example of best practice. Best practice would be to hold
interviews/assessments against the CSC Recruitment Guidelines. See Recommendation 6.
xxxxxxxxxxxxxxxxxxxxxxx Permanent Role (Case xx recorded on ATS system)
We reviewed case xx and found that the case file had no local authority to recruit or business case
approved documentation on file. There were no copies of sift marking grids, and no copies of the
interview marking grids. There was a copy of the external advert which allowed us to interrogate
the ATS system. See Recommendation 3. On reviewing the ATS system, we were satisfied that
the authority, business case and budget approval were intact along with the interview marking
grids clearly recorded on the system. When we made further enquiries as to how the file had
come to lose essential documentation, it was revealed that an administrative error had occurred.
We were informed by HR staff that the file had documentation xxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxx. There are clear, definitive periods of time for which records should be kept and
remain accessible which is detailed in the recruitment guidance. However, there was a lack of
evidence of compliance with these matters. In addition, we found no evidence of what records
were created xxxxxxxxxxxxxxxxxxxxxxxxx, with the exception of
rxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. This is a considerable risk, particularly to cases
not recorded on the ATS system.
Recommendation 7: The HR Function should introduce a document xxxxxxxxxxxxx policy and
training for staff to ensure that only documents no longer required for the business are properly
recorded xxxxxxxxxxxxxxxxxxxxxxxxx.
We note the Head of HR comments in regards to document xxxxxxxxxxxxx policies being in
place. It was ascertained during the audit that a number of documents
xxxxxxxxxxxxxxxxxxxxxxxxxx and there was no fall-back position.
This evidence again proves the validity of the ATS system in assuring that due process has been
followed. It also highlights the requirement for a stricter document xxxxxxxxxxx policy to be in
place for all administration staff to follow and further confirms the need for self-auditing
measures to be implemented in the department immediately. See Recommendations 7 & 16.
xxxxxxxxxxxxxxxx Temporary Role (Case xx not recorded on ATS system)
We reviewed case xx and noted that there was no business case and no vacancy approval within
the file documentation. There was no sifting marking grid. There wxxxxxxxxxxxxxxxxxxxxx for
the role and also an interview grid marking sheet, however, the interview grid marking sheet was
not completed. See Recommendation 3. This raises questions against the CSC recruitment
guidance principles and our requirement to evidence and ensure that the appointment has been
made against these and the legal framework. This case may have been subject to an administrative
error xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx as previously reported. However, we were unable to
ascertain if this was the case or not and is highlighted by exception to the laid down procedures
followed by many other recruitment campaigns. This case highlights the need to have all
recruitment and selection subject to robust procedures recorded and evidenced against the CSC
Principles.
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
7.
xxxxxxxxxxxxxxxxx Temporary Role (Case xx not recorded on ATS system)
In this case file there were no sifting grids.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Temporary Role (Case xx not recorded on ATS system)
In this case file there were no sifting grids for 3 of the candidates.
xxxxxxxxxxxxxxxxxxxxxxxxxxxx Temporary Role (Case xx not recorded on ATS system)
In this case file there were no sifting grids for 3 of the candidates.
We reviewed an additional 6 cases at SPSC all of which were recorded on the ATS system and
found these all to be well evidenced and properly recorded as per the laid down recruitment
procedures. The cases which are all temporary posts, development posts or secondments are not
being processed with the same detail or assurance (as permanent roles are) which we would deem
as best practice.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
We reviewed txxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx .We asked to see SPS
guidance for this type of recruitment and were told that there was none. We understand these were
the xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. HR staff informed us that these types of
recruitment were usually completed under the xxxxxxxxxxxxxxxxxxxx for which there is detailed
guidance.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
We reviewed this case from records in the career file of the post holder as the post was not
advertised due to the zzzzzzzzzzzzzzzzzzzzz for which we could find no formal SPS guidance.
Txxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. We could find no
job description on file. We were also informed that there was no job evaluation completed to date.
The role is graded at SPS band x and is part of the restructuring of existing posts within
xxxxxxxxxxxxxxxxxxxxxxxxxxx Directorate. The Director has confirmed that the budget is in
place. The post holder xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. In this case there
were several items of communication in the file which referred to the xxxxxxxxxxxxxxxx.
Communications also centred on the future xxxxxxxxxxxxxxxxxxxxxxxxxx and the role holder
would be free to apply xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. There was also mention of the
fact that the current role may be advertised under the CSC Principles
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. xxxxxxxxxxxxxx the post holder would not have to
xxxxxxxxxxxxx and this was their preferred method of recruitment. In this case, txxxxxxxxxxxxx
would appear to have been utilised in order that the post holder
cxxxxxxxxxxxxxxxxxxxxxxxxxxx. The role holder would axxxxxxxxx xxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxx. On checking whether TUS or PLR had been consulted we were
informed by our TUS colleagues they have no knowledge of the xxxxxxxxxxxxxxx and they were
not aware that it was even available. They were fully aware of our normal process of
xxxxxxxxxxx.
xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxx.
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
8.
We reviewed this case from recruitment records case file xx and noted that there was a full job
description, business case and budgetary approval in place and that the job was advertised on the
ATS System externally and closed xxxxxxxxxxxxxxxx. In this case the xxxxxxxxxxx would
appear to have been utilised in order that the post holder xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. In the
communications on file there is mention of xxxxxxxxxxxxxx dated xxxx xxxxx xxxx, however on
checking with HR staff we have confirmed this was in fact under the xxxxxxxxxxxxxxxxxxxxx
for which we could find no formal SPS guidance.
Recommendation 8: If SPS is to fully adopt the xxxxxxxxx xxxxxxxxxx xxxxxxxxx
xxxxxxxxxxxxxx in addition to xxxxxxxxxxxxxxxxxxxxxxx, HR should develop a formal
guidance for staff to administer it. This should also be promoted and published in the HR
Communications website.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx - xxxxxxxxxxxxxxxxx
We reviewed one case which HR advised us that the role had been recruited xxxxxxxxxxxxxxxxx
txxxxxxxxxxxxxxxxxxxxxxxxxx. Our understanding of this case was that the xxxxxxxxxxxxx
xxxxxxxxx was followed in this case with the exception of the initial application. We have seen a
memo which states that the Resourcing Team received an application from xxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxx. There are references in the file indicating that an application was
received. We asked the Resources team twice for a copy of the application but this has failed to
appear. There is a memo in the career file which may suggest that someone from SPS approached
the individual rather than the individual approaching SPS. The eligibility criteria stated in the
Routes to Employment produced jointly by HR Recruitment and Employment Relations &
Reward dated xxxxxxx xxxx states: Ixxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxx.
We spoke to The Director of xxxxxxxxxxxxxxxxxxxxxxx and xx fully accepted that due process
was followed with the exception of the initial application. xx accepted that a mistake had been
made. xx also stated that he had made a mistake in xxxxxxxxxxxx xxxxx xxxxxx and that he had
been guided and advised by HR colleagues throughout xxxx xxxxxxxxx xxxxxxx.
National Framework Agreement
Procurement Services informed us that SPS currently utilise the National Framework Agreement
for Temporary & Interim Staff awarded by Scottish Government. This Framework Agreement
includes 21 suppliers to variously provide coverage across Scotland and across the required range
of staff disciplines used across the various branches of government in Scotland.
We requested to see a list of all roles recruited under the National Framework Agreement
currently working within SPS Headquarters and we were not provided with a list immediately as it
was not up to date. When we did receive the list we sampled 8 out of the xx from the list we were
presented with, which we later found was not completely accurate. Our conclusion was the
information we were supplied with initially was not accurate and is of concern.
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
9.
Recommendation 9: HR should create and maintain an up to date central registry for all National
Framework Agreements.
During our review of agency & contractors working at HQ we found the following:
xxxxxxxxxxxxxxxxxxxxxx - Case xx: Agency
This case was a temporary contract which was tendered by SPS to fulfil a particular need. We
noted that there was no business case and no vacancy or budget approval within the file
documentation. When we enquired, we were informed that the Chief Executive was asked by the
Director of xxxxxxxxxxxxxxxxxxxxxxxxx about this position and it was authorised. However, we
would like to see documentation supporting such requests in order that procedures are being
applied equally and to support the process and recruitment principles.
The contract was tendered on the xxxx xxxxxxxx xxxxxx This was closed on the xxxxx
xxxxxxxxx and the commencement of work date was xxxxx xxxxxxxxxxx. We have seen a memo
which was dated xxxxxxxxx xxxxxxx xxxxxxxx which may suggest that xxxx xxxxxxx xxxx
xxxxxxxxxxxl was being sought over and above the actual services. Evidence to support this
situation is contained within the audit files.
On further examination, we found that the tender was made for xxxx xxxxxx xxxxx under the SG
Framework Agreement. The contract we saw specified a rate of xxxxxx per hour xxxxx xxxxxx
xxxxxxx xxxx. There was also a clause in the contract with the option of xxxx xxxxx xxxxx xx.
xxxx xxxxx xxxx are normally provided by SPSxxxx xxxx xxxxxs. We recognise the Director of
xxxxx xxxxx xxxx has the authority to recruit any appointment. However, it would be good
practice to ensure that there is xxxx xxxxx xxxxxxx xxxx xxxxxxx xxxxxxxx xxxxxx xxxxxxx
xxxxxxxxxx xxxxxxxxx. .
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx - Case xx: Agency
This case had no local authority to recruit and no budget approval form in the case file.
xxxxxxxxxxxxxxxx - Case No xx: Agency
No local authority to recruit and no budget approval form in the file.
xxxxxxxxxxxxx - Case No xx: Agency
No local authority to recruit form and no budget approval form in the file.
xxxxxxxxxxxxxxxxxx - Case No xx: Agency
No local authority to recruit form and no budget approval form in the file.
xxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxx - Case No xx: Agency
No local authority to recruit form and no budget approval form in the file.
xxxxxxx xxxxxxx - Case No xx: Agency
No local authority to recruit form and no budget approval form in the file.
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
10.
xxxxxxxxxxxxxxxxx Case xxxxx: Agency
This case was an agency contract via framework agreement and was recorded as being on a
rolling contract. The appointment to the role was in xxxxxxxxxxxx at a cost of xxxxxxxxx. The
SPS has now been paying this full time contract for a period of approximately xxxxxxxx. This
case highlights a need for cost control and performance evaluation measures to be recorded and
implemented. One example would be not to have the life of a contract exceed a set time period.
This forces annual bidding or at least renewal discussions with the current supplier or contractor.
In the examples we have seen for internal and external selection, there is evidence of good
practice where authority to recruit and budget approval is signed off prior to the actual selection
processes. In addition, these are recorded. However, in the case of temporary and agency
appointments, there appears to be a lack of evidence on file of this practice being followed.
There was no evidence in any of the Agency files to suggest that any control measures were in
place at the time of the audit. Proper records provide evidence of the effectiveness of (or
otherwise) of agency staff and evidence of early problems that strengthen the organisations
position in exercising the option to extend the contract or not. Without good record keeping and
evidence it is difficult to defend the continuation of such contracts. The cost for all Agency
Framework Temporary staff spends for the period covered by this audit at HQ is £1,425,345.47.
All such proposals should demonstrate that the spending proposal has clear and concise spending
objectives.
Recommendation 10: SPS should develop clear policy and guidance including reporting
requirements control measures, line manager responsibilities and a monitoring plan covering key
timelines, critical deliverables and performance reporting for all National Framework
Agreements.
Recommendation 11: All and any extensions to the short term agency framework agreements
should be supported by clear evidence including support for funding the extension period.
Job Evaluation
Job Evaluation (JE) is a systematic form of assessment which provides the basis for a grading
structure to which salary rates are subsequently added. JE is used to assess the relative ‘worth’ of
a job description and person specification. The ‘worth’ of the job translates into a number of
points which in turn determines the pay grade. Jobs are placed in a rank order according to overall
demands placed on the job holder. In some JE schemes jobs are placed in rank order – this is not
necessarily the case in the SPS JE Scheme. JE should provide the basis for a fair and orderly
grading structure.
The process consists of a Job description form complete with a business case and authorisation.
This is sent to Employee Relations and the job evaluation process is initiated. The process
includes the use of computer software which was developed by KPMG in 1995 and customised to
suit SPS requirements; the software is called “Equate” and we are currently using version 3 (this
software is no longer supported by KPMG.) We reviewed some recent evaluations carried out by
the team and we are satisfied that the process is being carried out properly despite the absence of
up to date software, guidance and training. There is a JE manual which we were informed is
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
11.
referred to by JE Panels. This manual provides guidance on the scheme. Panel members are
trained in the implementation of the scheme albeit on an informal basis.
JE currently uses job descriptions which they consider to be correctly graded as ‘benchmarks’ for
the job being evaluated. However, in the current job evaluation Manual 2nd edition dated July
2005, six of the benchmark job descriptions do not currently exist within SPS nor do they reflect
our current business requirements and a further two of these have been reconfigured within the
estates services. Confidence in the job evaluation scheme may be seriously undermined with the
use of outdated software and the ten year old manual which is overdue a review. We were
informed that a review of Job Descriptions is currently on-going by an external consultant. In our
opinion, the current SPS Job Evaluation process is being adhered to by staff as best they can but
the software and benchmarking tools are not fit for purpose and HR should expedite the project to
revise and review the current system or introduce a new one.
Recommendation 12: HR should revise and review the current system or introduce a new Job
Evaluation system.
We were also informed that there is no formal training for job evaluation personnel, including
software input or panel members who may also be participating in any appeals procedure. This is
a weakness. There is an appeals mechanism and the JE Appeal panel is chaired by the Head of
Human Resources and a TUS member, (the process is fully described in the manual.) We were
informed that during the period of xxxx xxxxxx xxxxxx xxxxxx xxxxx there have been no appeals
recorded. The training has to date consisted of shadowing for staff and this includes the TUS/PLR
representatives.
Recommendation 13: Job Evaluation training should be formalised in order to support those
contributing to the process and to protect the organisation from risk.
xxxxx xxxxxx xxxxx xxxxxx – xxxxxxx xxxxxx
During our audit, we had occasion to review some xxxxxxx job evaluations and followed up the
pay process following the job evaluation of a reconfigured job. We found xxxxxxxxxx with
regards to a xxxxxxx job reconfiguration which was carried out via the JE process. On further
investigation it was revealed that the reconfigured post was that of the xxxxxx xxxxxx
xxxxxxxxxxx. The Job Evaluation team started looking at the paperwork in xxxx xxxxxx. It was
processed and recommended “xxxxxxx xxxxxxx xxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxx
xxxxxxxxxxxx. There xxxxxxxxx xxxxxxxxxxs in role at present; further investigations revealed
from xxxxxxxxxxxxxxx that axxxx xxxxxx xxxxxxxx xxxxxxxxxx xxxxxxxxxxxxxx despite the
confirmation of the new role appointment being made in xxxxxxxxxxxxxxx. There is no
explanation for this in the file notes.
We were informed by HR that this action was detailed in the JE Manual; however, on reviewing
this document we can find no confirmation of xxxxxxxxxx in the JE Manual. When we spoke to a
representative from the ER&R Team we were informed that this was ‘custom and practice’ rather
than included instructions in the JE Manual.
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
12.
xxxxxxx xxxxxxxxxx x xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx x
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxx.
xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxx
xxxxxxxxx xxxxxxxxxx xxxxxxxx..
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx:
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxx ssssssssss a
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxx
xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxxx xxxx
xxxxxxxxxxxxxx.
sssssssssssssssssssssssssssssssssssssssssssss.
xxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxx..
Recommendation 14: HR Function should ensure that all information forwarded xxxxxxxxxx
xxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxx.
Senior Assignment Panels:
We also had occasion to review the Senior Assignment Panel Minutes and the Surplus
Management Group Minutes and we were satisfied that this process is recorded and final
decisions are recorded. There was no rational for the final decision was provided in the minutes
and a review of this area should be considered.
Information and Communication:
The HR Recruitment Guidelines SharePoint Website has numerous forms and policy documents
to inform staff of policy and the existence of these forms to utilise when a vacancy is created, this
includes some pre selection forms, the selection process itself and the post campaign information
which includes pre-loaded templates is very useful and easy to navigate. There are some forms on
the site which are out of date e.g. The Specialist Post Policy 2005 in the pre selection section is
now no longer in place and the assurance templates require to be reviewed and updated.
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
13.
Recommendation 15: A review of all the documents held on the SharePoint site should be
carried out to ensure that they are up to date and we would also suggest that they are version
controlled.
Monitoring Internal Control:
The monitoring and internal control of the documentation leaves room for improvement. There is
no recorded process for self-audit at HQ by HR Business Partners as laid down in the SPS
recruiting guidelines. We found three forms on the HR SharePoint site entitled, Recruitment
Campaign Review and Assurance Form, Recruitment Assurance Visits Outcomes Checklist and
Recruitment Assurance Visits which were clearly for self-audit purposes. We found no evidence
of their use and none of the cases we audited had been subject to any self-audit process. The
content of the forms themselves is also in need of updating and review. The Resources Team at
SPSC complete a self-reporting audit. A follow up audit by KPMG or the Commissioner’s Office
is based on risk reported e.g. if there was high risk areas or if you have not been audited in past 3
years we will receive a site visit. SPS have been audited twice in the past 4 years the last time
was in 2013.
Recommendation 16: The HR Function should carry out a review of the current self-audit
paperwork and in addition commit to a schedule of regular self-audits in order to provide
secondary assurance that procedural guidance is being fully adhered to.
4. Good Practice
The following items of Good practice were identified:
Applicant Tracking System
160 Staff Trained as Interviewers
5. Audit Opinion
The recruitment of effective, efficient and deserving candidates is a very difficult task for any
Human Resources Department. The importance of this task cannot be underestimated. The
Applicant Tracking System provides gateways and assurance checks which ensure processes are
being strictly adhered to and in all those cases on the ATS system we sampled we found them to
be correct. The majority of errors we found during our audit were where documentation did not
evidence or support due process. In addition there are high cost risks associated with incorrect
recruitment and selection decisions which must be fully justified. In relation to permanent staff,
we can offer Reasonable Assurance.
The recruitment and selection of temporary posts, development posts and secondments are not
properly recorded in all instances and we would like to see a more formal process aligned to the
ATS system to ensure that due process is evidenced in all cases. Therefore, we can only offer
Limited Assurance for the recruitment and selection of temporary posts, development posts and
secondments at HQ.
OFFICIAL SENSITIVE
Scottish Prison Service, Audit & Assurance Services, Calton House
14.
The National Framework Agreement for Temporary & Interim Staff also leaves room for
improvement, there is no policy and guidance for the management of these posts and no
performance evaluation and we have seen evidence of mixed practice across the cases we have
reviewed. Procedures for the day-to-day activities of temporary staff and interims should be
implemented and followed. As a result, we can only offer Limited Assurance for the
management of National Framework Agreement for Temporary & Interim Staff at HQ.
On the basis of our findings, we can offer an overall Limited Assurance for the controls in place
for the Audit of Recruitment & Selection at HQ Calton House. The SPS requires fairness,
openness and accountability to be an integral part of its recruitment and selection process in
order to avoid any unwarranted reputational risk.
Acknowledgement
We would like to thank all the managers and staff at Human Resources Department at both HQ
and SPSC for their courtesy and co-operation during this audit and for the facilities and
assistance provided.
Adam Quin
Senior Auditor
xxxxx xxxxxxx
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
15
Finding Recommendation Management responses (Including Timescales for
implementation of actions)
Risk
Rec 1 We were informed that there is a working group looking at enhancing the current ATS system to incorporate all types of vacancies. We would like to see this expedited to provide additional assurance for all recruitment in SPS. The ATS system allows the team to streamline processes, engage the right candidates, and monitor key metrics.
The HR Function should expedite the ATS project to enhance the system to ensure that where possible records for recruitment are properly progressed in line with the Civil Service Recruitment Principles and SPS procedures in line with fairness, openness and accountability within our legal requirements.
Work was already being progressed on this recommendation at the time of the audit. Further work is being scoped to identify the feasibly of aligning electronic -HR with the Application Tracking System (ATS) to ensure one system holds all of an individual’s personal data and employment history. This will be subject to approval at the Business Planning cycle which is due to commence in October 2015. The Internal Temporary Appointments to the ATS system is currently being tested. Internal Temporary Appointments are defined as vacancies & opportunities to be advertised across the SPS estate On implementation the ATS system will support the recruitment of staff and provision of management information in the following categories: • Internal & external permanent (already in place) • External fixed term (already in place) • Internal temporary appointments The next stages: • Testing and follow up action • Systems update • HR Guidance Timescale: Completion date: 09 October 2015 Following the completion of the above, further work will be undertaken to review the feasibility of including all agency staff are recorded on our HR systems. This will be subject to the Business Planning process that will commence in October 2015. Timescale:
High
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
16
Subject to Business Planning cycle.
Rec 2 The recording system we were shown was not robust enough to be of assistance as it did not receive a signature for the file being removed and there was no check of the file contents upon its return. This process should be reviewed.
The HR Function should review their case file sign out and recording process and introduce a sign out procedure which records and tracks the access to case files and provides a record of monitoring for security and assurance purposes.
Accepted. Enhanced manual signing in and out procedures are now in place, and this is augmented by an electronic recording system which records all transactions. HR staff have all been advised of this revised process and the need to ensure that this is properly adhered to. This revised process has been reviewed and successfully spot checked by the Director of Corporate Services and the Head of HR on a number of occasions. Further regular checks will be undertaken on an unannounced basis approximately every 2 months. Timescale: Complete
High
Rec 3 In all of the cases we reviewed there were no checklists to provide assurance that the correct documents were enclosed or to state documents were missing from the file. We did have some documents reported missing to us from the recruitment files during our audit.
All recruitment case files should be itemised using a checklist against the status flowcharts to ensure adherence to process and to support self and internal auditing.
Accepted: As an interim measure the HR-HQ team has adopted a manual checklist for each file to ensure all necessary items are in place. This interim measure was successfully reviewed on 14 Aug 15 by the Director of Corporate Services. Further sampling will continue until the online system automates this process. The substantive solution will be achieved through the further development of the ‘Campaign Assurance & Summary Report’ including guidance to HR Teams and the introduction of Merit Order Summary reports to be completed by the Recruiting Department at each assessment stage. Both of which will be implemented by 30 September 2015. The Online Recruitment system is designed to guide and capture campaign process. This is existing practice for all internal and external recruitment in SPS and will be extended to capture Internal Temporary Appointments as
Medium
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
17
described at the management response to Recommendation 1. Timescale: 9 October 2015
Rec 4 There was no relationship declaration in any of the recruitment case files which we reviewed. We were informed that this was completed on an exception basis and when we asked to see if any declarations had been completed, we were informed that there was no record of any in any of the files either at HQ or at SPSC.
A recruitment declaration for panel members should be considered and added to the recruitment procedures to assist with full transparency of the process.
Accepted: A declaration form for assessors has been designed and will be included in the Recruitment Guidelines on our SharePoint site by 30 September 2015. Guidance for recruiting managers and assessors will be incorporated in the review of recruitment guidelines. Timescale: 30 September 2015
Medium
Rec 5 There is a requirement for a business case and relevant authority to be recorded against the file as stated in the recruitment guidelines.
A review of all case files should take place to ensure a relevant business case with signatory authorisation against budget is documented, valid and intact. Verbal agreements should always be supported by documentary evidence to ensure due process.
Accepted: A review of the recruitment campaigns for the previous 12 months has been undertaken. This has ensured that all files now hold the relevant documents. In addition, as per recommendation 3, a checklist has been adopted to ensure all documents are in place. Timescale: Completed
High
Rec 6 There is no laid down process or guidance for the recruitment of a temporary role and it is very much at the discretion of the manager.
The principles of fairness, openness and accountability should be applied and recorded in all our internal recruiting processes including temporary posts, development posts and secondments.
Accepted: A flow chart has been designed and will be circulated to advise line managers of the agreed process with regard to the appointment of temporary staff. Flow chart is complete and will be issued by 21st September 2015. Timescale: Completed As an interim measure the Executive Group are now reviewing all Agency Staff appointments. Timescale: Completed Temporary posts and development opportunities as well
High
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
18
as the engagement of agency workers will all be included in the revision of the SPS Recruitment Guidelines. Timescale: 31 March 2016.
Rec 7 There are clear, definitive periods of time for which records should be kept and remain accessible which is detailed in the recruitment guidance. However, there was a lack of evidence of compliance with these matters
The HR Function should introduce a document xxxxxxxxx policy and training for staff to ensure that only documents no longer required for the business are properly recorded xxxxxxxxxx xxxx xxxxxxxxxxx
Accepted: A document xxxxxxxxxx policy is already in place, and the HR files were in the latter stages of being reviewed during the audit in February 2015. HR staff have been reminded of the requirements for document xxxx xxxx xxxxxxxx and a Record Management Plan has been issued to HRBPs. ER&R will also issue reminders regarding the annual file review arrangements, and the SPS Information Security Manager has been asked to deliver a training session for relevant staff. Timescale: Complete
High
Rec 8 We reviewed xxx xxx xxx xxxx xxxxx cxxx xxxxxx xxxxx xxxxxx xxxxxxxxxx. We asked to see SPS guidance for this type of recruitment and were told that there was none.
If SPS is to fully adopt the xxxxx xxxxx xxxxxx xxxxxxxx xxxxxxxxx in addition to SPS xxxxxxx guidelines, HR should develop a formal guidance for staff to administer it. This should also be promoted and published in the HR Communications website.
Accepted: This will be incorporated into the review of recruitment guidelines. Time Scale: 31 March 2016. In the interim, updated advice on sxxxx xxxxxx xxxxxxxxxxx has been made available via SharePoint. Timescale: Complete
Medium
Rec 9 We requested to see a list of all roles recruited under the National Framework Agreement currently working within SPS Headquarters and we were not provided with a list immediately as it was not up to date. When we did receive the list we sampled 8 out of the
HR should create and maintain an up to date central registry for all National Framework Agreements.
Accepted: The HR Resourcing Team will be responsible for the contract management of Agency Workers. Further information will be developed on SharePoint, within a shared working area for HR practitioners, to provide more detailed guidance for managers. The Resourcing Team will
High
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
19
xx from the list we were presented with, which we later found was not completely accurate.
monitor the performance of these contracts and any temporary agency staff employed will be recorded on our HR systems. The Resourcing Team will also meet with service providers to discuss contractual issues on a bi-annual basis. The Employee Resourcing Manager has attended an engagement day with SG Procurement and Service Providers to discuss contractual arrangement and service levels. Once this is completed further development of the SharePoint site will be required. Timescale: 30 September 2015 Authority to and the budget for the recruitment of temporary staff sits with line managers, therefore historically HR have not always been aware of all appointments. In future all temporary agency appointments for roles within HQ will be monitored by HQ HR. And this will enable the HR HQ team to flag up when contracts are coming to an end. Timescale: Complete
Rec 10 There was no evidence in any of the Agency files to suggest that any control measures were in place at the time of the audit.
SPS should develop clear policy and guidance including reporting requirements control measures, line manager responsibilities and a monitoring plan covering key timelines, critical deliverables and performance reporting for all National Framework Agreements.
Accepted This will be captured in the revision of SPS recruitment Guidelines. The guidance will also incorporate advice on how to manage agency workers. Timescale: 31 March 2016 A pro forma is already in place for managers to use when requesting temporary staff under the framework contract. They are required to indicate the critical deliverables of the job as well as the knowledge skills and experience required of the post holder. Timescale: Complete In the interim guidance will be provided to all line managers & HR staff about the need to ensure proper management and monitoring of any agency staff.
High
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
20
Timescale: 21 September 2015
Rec 11 All such proposals should demonstrate that the spending proposal has clear and concise spending objectives.
All and any extensions to the agency framework agreements should be supported by clear evidence including support for funding.
Accepted: The HR HQ Team have been instructed to include the following documentation as part of the central registry: • Confirmation of budget • Confirmation of approval from the Exec Team • Confirmation of business case requirement, which should include details of what the individual is being assigned to deliver, e.g. project etc., including details of the need for extension. This will apply to all new extensions from 14th September 2015. Timescale: Complete
High
Rec 12 Confidence in the job evaluation scheme may be seriously undermined with the use of outdated software and the ten year old manual is overdue a review. In our opinion, the current SPS Job Evaluation process is being adhered to by staff as best they can but the software and benchmarking tools are not fit for purpose and HR should expedite the project to revise and review the current system or introduce a new one.
HR should revise and review the current system or introduce a new Job Evaluation system.
Accepted: In accepting this recommendation it is recognised that this will be an extensive piece of strategic improvement work which will require consultation. Timescale: It will be discussed as part of the SPS corporate planning cycle that begins in October 2015.
High
Rec 13 We were also informed that there is no formal training for job evaluation personnel, including software input or panel members who may also be participating in any appeals procedure. This is a weakness. There is an appeals mechanism and the JE Appeal panel is chaired by the Head of Human Resources and a TUS member, (the process is fully described in the manual.) We were informed that during the period xxxxx xxxxxxxxxxxxxxxxxxxxxxx there
Job Evaluation training should be formalised in order to support those contributing to the process and to protect the organisation from risk.
Accepted: The current informal training that was available has been reviewed and formalised. Timescale: Complete There will also be communications with all those who partake in the JE process reminding them of the key principles.
High
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
21
have been no appeals recorded. The training has to date consisted of shadowing for staff and this includes the TUS/PLR representatives.
Timescale: Complete.
Rec 14 Oxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxxx.
HR Function should ensure that all information forwarded to xxxxx xxxxx xxxxxxxxxxxx xxxxxxxxx xxxxxxxxxx xxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxxxxxx
Accepted: Txxx xxxxxxxxx xxxxxxxxxx xxxxxxxxxx xxxxxxxx xxxxxxxxxx xxxxxxxxxx xxxxxxxxxx xxxxxxxxxx xxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxxxxx require authorisation from the Director. HR team have also been reminded nxxxxxxxxx xxxxxx xxxxxxxxx xxxxxxxxx xxxxxxxx. Xxxxxx xxxxxxxxxxxxxx xxxxxxxxxxxxx xxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxx x. Timescale: Complete
Medium
Rec 15 The HR Recruitment Guidelines SharePoint Website has numerous forms and policy documents to inform staff of policy and the existence of these forms to utilise when a vacancy is created, this includes some pre selection forms, the selection process itself and the post campaign information which includes pre-loaded templates is very useful and easy to navigate. There are some forms on the site which are out of date.
A review of all the documents held on the SharePoint site should be carried out to ensure that they are up to date and we would also suggest that they are version controlled.
Accepted: As an interim measure the Resourcing Team will review all recruitment forms and make any necessary amendments to ensure they comply with existing policy and practice. This will be completed by 30 September 2015. Timescale: 30 September 2015 This recommendation will also be taken forward as part of the HR Policy Review Project We have identified as a priority the need to ensure that access to these documents and the ability to modify them is properly managed through an appropriately permissioned version control process. Timescale: 31 March 2016
Medium
Rec 16 We found three forms on the HR SharePoint site which were called Recruitment Campaign Review and Assurance Form, Recruitment
The HR department should carry out a review of the current self-audit paperwork and in addition commit to a
Accepted: The Resourcing Team completed an on-site audit on 24 August 2015. In preparation for the audit all recruiting
Medium
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
22
Assurance Visits Outcomes Checklist and Recruitment Assurance Visits which were clearly for self-audit purposes. We found no evidence of their use and none of the cases we audited had been subject to any self-audit process. The content of the forms themselves is also in need of updating and review.
schedule of regular self-audits in order to provide secondary assurance that procedural guidance is being fully adhered to.
departments have completed a self-assessment of their campaigns for 14-15 reporting year. In addition the SPS Senior Resourcing Manager has completed an independent review of a sample of the campaigns. Feedback will inform future learning and be captured in guidance as part of the revision of recruitment guidelines. HRPBs will also be reminded to undertake this as part of their roles with the Head of HR Operations responsible for ensuring spot checks. The resourcing team will undertake a rolling programme of self-assessments. Timescale: Completed.
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
23
Annex A
AUDIT AND ASSURANCE REPORTING POLICY
This report is produced on an exception-reporting basis, from reviews conducted over the
areas of control environment, risk assessment, control activities, information and
communication and monitoring internal control. Items of non-compliance with SPS
procedures are recorded, as are recommendations to make improvements to existing
processes. These are all reported as a record of audit findings. The level of risk attached to
individual issues represents the risk of non-compliance rather than the overall level of risk to
the organisation. Items that are clearly non-compliant with a stated SPS policy or Prison
Resource Library standard will generally be recorded as “high risk”. Management of the area
under review have the opportunity to respond to the report and outline management actions
proposed with time scales for action.
Audit Assurance Levels
In giving our assurance on the adequacy and effectiveness of risk management systems,
controls and governance designed to achieve systems and business objectives, we have four
levels to define; full, substantial/ reasonable, limited and no assurance.
Our definition of each is as follows: -
Substantial assurance: Sound systems of internal control likely to achieve systems
objectives, operating effectively in practice;
Reasonable assurance: A basically sound system of internal control, but a few
weaknesses that may place achievement of some systems objectives at risk;
Limited assurance: Systems of internal control that are satisfactory in part, but
contain a number of weaknesses that are likely to undermine the achievement of
systems objectives and leave them vulnerable to material error/ abuse or threatening
risk; and
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
24
No Assurance: Unacceptable systems of internal control, containing fundamental
weaknesses creating serious doubts over the achievement of systems objectives and
leaving it vulnerable to significant error/ abuse.
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
25
Annex B AUDIT & ASSURANCE SCOPING MEMORANDUM
SPS Recruitment and Selection Procedures
1. Source of review:
Request from the Chief Executive to review the process of job evaluation and recruitment
and selection for Calton House Staff during the x xxxxxxxxx xxxxxxx xxxxxxxxxxxxxxx.
2. Audit objectives:
The purpose of this audit is to provide assurance to the Chief Executive, the Advisory Board
and other major stakeholders that the processes for promotion re-grading, vacancy filling,
the use of consultants, secondments and temporary recruited personnel and all job
evaluation processes for Headquarters Calton House have been soundly and correctly
followed for the period xx xxxx xxxxxx xxxxxxxxx xxxxxxxxxx xxxxxxx. Assurance is also sought
that the recruitment and selection processes used during this period were robust, relevant,
and fair and that necessary approval and authorisation was granted at the appropriate
levels.
2.1 Control framework:
At a corporate level, SPS has policies and procedures in place which should ensure
compliance with sound recruitment and selection criteria. There should be clear
management accountability for all vacancy approvals with business cases compiled and
budgets approved. There should be a compelling job evaluation stating the job purpose, key
responsibilities and selection processes. There should also be a mechanism to provide
assurance that all applications have adhered to SPS policy and guidelines, the overarching
principles of the Civil Service Management Code and the Civil Service Commission
Recruitment Principles, current legislation and are evidenced with appropriate approval.
There are processes for monitoring security information and document retention.
2.2 Risk assessment:
Key risks are;
• Formal approval process for SPS recruitment and selection are not kept current. This
could lead to a lack of control in recruiting the right personnel, increasing the risk of damage
to SPS reputation.
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
26
• Industrial relations are harmed due to Management not following agreed policies,
procedures and guidelines for job evaluation, recruitment and selection.
• SPS recruitment and selection policies and processes do not adhere to current UK
and EU legislation. This could lead to financial loss and reputational damage to SPS.
• SPS job evaluation processes are not clearly defined; therefore they do not maintain
business focus and may not be appropriate in all cases, leading to failure to meet stated
organisational objectives.
• Failure to properly ensure that adequate and effective management controls are in
place could lead to unforeseen risks, disruption of business and breakdown of key financial
controls.
2.3 Control activities:
All SPS recruitment and selection applications at Headquarters are required to comply with
the SPS Recruitment & Selection procedures covering promotions and re-grading, vacancies,
consultants and temporary recruited personnel.
• Initiating the Vacancy Process
• Vacancy Proposals
• Recruitment Role/Responsibilities
• Selection Methods
• Assessment Centres
• Regrading Applications
• Job Evaluation processes
• Job Secondments
Security Information and Document Retention:
• There is a process of monitoring and retention of personnel documentation.
• There is a process for carrying out Disclosure checks.
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
27
• Deviation from process is reported on a timely basis to an appropriate level of
management to enable corrective action to be taken.
2.4 Information and communication:
SPS recruitment and selection should produce effective documents which support the
process fully. The process identifies and defines the roles of persons selected, recruited or
regraded. There is requirement that the process is supported by clear evidence which
details the authority to recruit and complies with a flowchart which maps the requirements
of the recruitment and selection process identified.
2.5 Monitoring internal control:
All recruitment and selection procedures should be monitored to ensure compliance with
the procedures described in the SPS Recruitment Guidelines.
3. Audit scope:
The audit will be carried out on SPS job evaluation and recruitment and selection processes
xxxx xxxxxxxxxx xxxxxxxxxx xxxxxxxxxx at Headquarters to provide assurance to the Chief
Executive; the Advisory Board and other major stakeholders.
The audit is conducted under the authority of the SPS Audit Charter signed by the Chief
Executive in September 2012. Paragraph 6 states: “AAU has free and unfettered access to all
information required to carry out its work and has full right of access to all SPS employees,
contractors, suppliers and external auditors for that purpose”.
Audit activities will be primarily focused on activities associated with the risks identified in
paragraph 2.2 but any other significant risks identified during the course of the audit
process will be followed up, investigated, and reported on.
4. Audit methodology:
Audit methodology is as undernoted;
RECOMMENDATIONS AND MANAGEMENT RESPONSES
Audit and Assurance Services, Calton House
28
• Review all key recruitment and selection documents, including job evaluation,
regrading applications and the appointment of consultants and temporary appointments for
the stated period.
• Interviews with key stakeholders and the team managers.
• Interview sample of staff, external and seconded resources, contractors, interims
and suppliers.
• Interview senior managers and HR personnel responsible for recruitment and
selection procedures.
• Examine job descriptions and role descriptors.
5. Key stakeholders:
• Chief Executive
• Director of Operations
• Director of Corporate Services
• Director of Strategy & Innovation
• Head of Human Resources
• Employee Resourcing Manager
• Job Evaluation and Project Manager
6. Time Allocated:
15 Days
7. Auditor: Adam Quin
Gordon Allan
Head of Audit & Assurance
xxx xxxx xxxxxxx