Audit Guidance 2005

Findings

Without specifically mentioning Faculties or individual departments, the following findings were made as part of the six Faculty reviews and three Faculty follow up reviews:

Contract Management

Need for greater communication and training in the requirements of when a contract is necessary, who is able to authorise an agreement and where a Standard Consultancy agreement would apply (including where to find the agreement). This problem was evident in over 50 per cent of the Faculties audited. Problems with Contract Management was also noted with a number of phone queries Internal Audit received throughout the year.

Many instances were noted where large invoices were raised to external organisations, without supporting documentation nor appropriate contracts in place. It is recommended that all staff are advised to read the following statute:

http://www.unimelb.edu.au/ExecServ/Statutes/r171r6.pdf

Refer specifically to Section A 1 (9), and 3 (1) for assistance.

Outside work rules & Company/Private interest disclosures

Non-compliance with outside work rules, particularly a lack of evidence of prior written approvals, HR34 forms (incomplete or signed off inappropriately) & company/private interest disclosures not made - listed on HR34 in appraisal however no evidence of HR36 for initial approval. This problem was evident in all Faculties audited. Further to this problem, it was found that staff were involved in work in external organisations without appropriate contracts in place nor approvals whether to include it as part of their University work, or outside work.

It was also found that whilst a number of company/private interest disclosures had been completed and filed with the Department or Faculty, the information had not been forwarded to Financial Operations for inclusion in the overall listing for the University. The prior approval forms were not being utilised and some Faculties were unaware of the existence of the HR35 and HR36 forms.

There was no evidence of Faculties/Academic staff obtaining the indemnification from the external bodies that they were fully aware the agreement was with the individual and not the University - as stated in the Attachment to the HR35 form.

Stemming from this area, where a Head of Department is not informed of the outside work being undertaken, possible conflicts of interest may arise - including inappropriate use of equipment and staffing resources. An audit of the Outside Work rules was undertaken in 2002 as part of the Faculty audits, and the findings were reported separately to the Deputy Principal (Human Resources). The policy in this area has been reviewed, changes have been made and approved through University Committees and a further audit will be undertaken in 2003 to monitor the adherence to the OSW policy.

http://www.unimelb.edu.au/ppp/docs/13.html awaiting latest update to the policy.

Copies of the forms listed above (HR34, HR35, HR36) can be found at: http://www.hr.unimelb.edu.au/forms/

Excessive Leave Balances

Staff will be deemed to be on annual leave from 1 January 2003 where there is an excessive leave balance (>40 days) with no leave plan. Reporting of excessive leave balances was part of all Faculty audits in 2002. The majority of Faculties reviewed had problems with leave management and significant members of staff with excessive leave balances. Some Faculties still incurred the Central Administration fines for not reducing their liabilities by the appropriate margin. This area will again be reviewed as part of the 2003 Faculty audit program. Four Faculties received the penalty as at Oct 31st, 2002 for not reducing their excess balances by the required 5%.

http://www.unimelb.edu.au/ppp/docs/9.html#9.7.3.3.

Inadequate monitoring of staff appraisal process

Generally, faculties did not have a procedure in place to ensure all Academic and General staff appraisals had been completed, where departments were required to advise the Faculty office. An outcome of the 2002 has been that a number of Faculty's have implemented an administrative procedure whereby either the appraisals and a full staff listing are provided to the Faculty office for review and storage, or just the listing with status of appraisals is provided to the Faculty administration.

Not all staff appraisals have been performed, including general staff. There was a lack of central filing for appraisals with copies being held by section managers within departments.

Not all position descriptions were considered to be up to date.

http://www.hr.unimelb.edu.au/pdf-participation/

Annual leave during periods of SSP(L)

It was found in over half of the Faculties reviewed that there were some staff who did not have the annual leave recorded during the period of SSP(Long). As per the PPP, the annual leave accrued during the SSP is to be taken within that period, not at either end of the time. It was also found that SSP(L) was not correctly recorded in Genesys indicating paperwork is not being forwarded in a timely manner to HR.

http://www.unimelb.edu.au/ppp/docs/12.html#12.6.

Refer specifically to section 12.6.3.11

Independent Contractors

Payments sample tested were not supported by independent contractors certifications, and many appear not to meet the criteria (in that professional indemnity insurance and public liability insurance has not been taken out).
This area is still under review, in relation to a new form coming out from Accounts Payable, however, the insurance limits required have been increased to $5 million.
Some instances where University staff had company interests who had contracted with the University. This must be declared to the Head of Department and is generally not permissible.

http://www.unimelb.edu.au/FinPPM/10.html#10.2.

Misuse of Corporate Cards

Inappropriate expenditure and payments without original supporting documentation.

http://www.unimelb.edu.au/FinPPM/9.html#9.6.

Deficit accounts

Some where appropriate action to reduce deficits had not been taken

Casual payroll

Overpayment of tutors/sessional staff. Not all casual staff reviewed had completed a Casual Contract of Employment (HR20A & HR20G).

http://www.hr.unimelb.edu.au/forms/

Travel

Policy not being adhered to, the policy is currently under review including the travel form.
http://www.unimelb.edu.au/ppp/docs/14.html

Student results processing

Not all signatures on Assessment returns are checked, nor are they all lodged with the Faculty student administration officer for their approval reviews.