Shetland
Islands Council
INTERNAL AUDIT REPORTConfidential
To:The Corporate Management Team
cc:Human Resources Manager
From:Service Manager - Internal Audit
Human Resources Manager
Corporate Review – Flexi-Time
- Executive Summary
Flexi-time has been introduced, where practical, across the Council and is generally working to the satisfaction of both management and staff.
Whilst the issues identified as a result of our corporate review cannot be construed as key, there are a number of operational inconsistencies Council-widewhen compared to the Flexi-Time Policy approved by Council.
These inconsistencies primarily relate to:
- Lack of adequate recording / authorisation / periodic checking of flexi-time records
- Hours being carried forward in excess of policy
- Individuals consistently in deficit
- Verbal authorisation for flexi-leave
- Recording of flexi-timeon forms other than the template provided by HR
- Service variations to band width without evidence of Head of Service and Human Resources approval
It is Internal Audit’s and Human Resource’s opinion that to ensure fairness and consistency flexi-time procedural matters should be consistent throughout the Council. Any necessary deviation from standard practice would require to be approved by the Human Resources Manager.
HR have three issues which relate to flexi-time outwith the scope of the work undertaken by Internal Audit and these are incorporated within this report (6.1 – 6.3) for consideration by CMT.
- Audit Scope and Background
2.1Flexi-time was introduced Council-wide as part of the single status agreement with effect from October 2009. This applied for those services that predominantly operate Monday to Friday 9am to 5pm. A policy had been approved by Council prior to implementation.
2.2Whilst there were initially some management concerns, and indeed flexi-time has not been introduced in some officebased services e.g. ICT and at Sella Ness, where it has been operational the implementation has worked well notwithstanding some operational discrepancies identified by this review.
2.3There was disquiet amongst staff in some services where flexi-time was restricted or prohibited but no formal complaints have been made by the unions. However, if it becomes known there are inconsistencies in the implementation of the scheme, this may change.
2.4In order to ascertain the situation Council-wide, Internal Audit devised and circulated a questionnaire to all relevant services. The results of this are summarised as Appendix 2.
2.5Thereafter a judgmental sample of 60 staff perceived to be participating in the flexi-time scheme, to some degree, were selected and compliance with policy requirements was reviewed for two flexi-time accounting periods. Findings are summarised in Appendix 1.
3Audit Findings
3.1In 7 cases (12%) individuals were carrying forward hours in excess of the 15 hour maximum allowed.
3.2In 8 cases (13%) individuals had been in deficit for at least two consecutive periods. In 2 of these situations the deficit exceeded the maximum allowed of 7.5 hours.
3.3In 8 (13%) of the cases flexi-sheets are not being authorised by line management.
3.4 In 24 (40%) cases flexi-leave is being verbally agreed.
3.5 In 5(8%) cases a form different to the one recommended by HR is being utilised.
3.6For one individual, whilst flexi-time accrued was not being claimed, it was apparent that hours actually worked were consistently in excess of contracted hours.
3.7 In 4(7%) cases annual leave was recorded on flexi-sheets but had not been deducted from actual annual leave records. On further investigation, in one of these cases this was on a number of occasions throughout 2010.
3.8Administrative functions in some parts of the Council (HR, Finance, Grantfield Infrastructure, Building Services & Children’s Services) check to ensure flexi-sheets accurately reflect leave and sickness taken. This does not occur in other areas.
3.9Seven services within the Council were identified as working outwith the bandwidth of the policy. Only three had sought appropriate Head of Service / HR approval. It is probable that on occasion other services operate outwith the bandwidths.
4Concerns / Risks
4.1There is inconsistency throughout the Council in recording, monitoring and administering flexi-time. This will lead to inconsistency in approach and also potentially to abuse of the system in some areas where there is inadequate control.
5.Recommendations
5.1The requirements of the Council’s Flexi-Time Policy should be observed with any necessary deviation from standard practice requiring to be formally approved by the Human Resources Manager and the relevant Head of Service.
5.2Time recording should be undertaken on a daily basis by individuals utilising the standard Human Resources template, not a range of service designed forms. This is not a time-consuming exercise. Completion of the forms would help to ensure Working Time Directive requirements are being met for officers of the Council assuming forms are adequately monitored and approved.
5.3Alternatively where flexi-time is not worked an agreed weekly working pattern should be held in the individual’s personal file.
5.4Managers and / or supervisors should have electronic access to these records at all times with an authorisation process being undertaken at the end of each accounting period.
5.5In the light of discrepancies identified, an end of period administrative check of records should be undertaken in services Council-wide.
5.6Hours carried forward as flexi-time should not exceed the policy maximum of 15 hours.
5.7Deficits should not exceed the policy maximum of 7.5 hours and must be cleared by the end of the following accounting period except in exceptional circumstances, e.g. snow.
5.8All flexi-leave granted within core hours should be appropriately authorised. This could simply be e-mail authorisation.
5.9Individual service variations to the policy band width must be formally approved by the Head of Service and the Human Resources Manager.
5.10Human Resources are in agreement with these recommendations.
5.11It is proposed that Internal Audit, following guidance from CMT,will follow up areas of non-compliance in services with further testing undertaken at the end of 2011. CMT will be advised of any continued non-compliance to determine what action is deemed necessary.
6.HR Specific Issues & Recommendations
6.1The Policy allows services to consider variation to band width times and this has been agreed in a number of service areas to include weekend working. This has generally been done for the mutual benefit of service provision and employee benefit. The situation, however, arises therefore that employees in service areas where such extensions have been agreed will accrue flexi hours for work undertaken at the weekend at straight time. Council employees who do not operate flexi-time or who have no extension agreed will receive payments of time plus a third; or time plus a half if working overtime, for all hours authorised and required to be worked.
We are therefore concerned that Single Status employees are accruing different rates for weekend work depending on how this has been administered. This may be defended by the overall employee benefits of operating flexi-time but we must be aware of possible equalities issues as it is likely that further analysis would show that this may impact more on female employees than male.
This further supports recommendation 5.1 that variations must be formally approved by the Head of Service and the Human Resources Manager.
6.2The Policy currently states:
Core Time
All staff participating in the system shall work during the hours 10.00 am to 12.00 pm and 2.00 pm to 4.00 pm unless agreed part-time patterns of work dictate otherwise.
There is general acceptance that there is a need for core hours. However there will be exceptions where employees require to take time off during these core hours and this is not always authorised. For example when meetings have meant that an employee has been unable to take a lunch break between 12 noon and 2 pm. It is therefore recommended that we alter the wording of this paragraph to:
Core Time
All staff participating in the system shall work during the hours 10.00 am to 12.00 pm and 2.00 pm to 4.00 pm unless agreed part-time patterns of work dictate otherwise or appropriate authorisation is sought from line management at the earliest opportunity for any required variation. e.g. where the employee has been unable to take a lunch break between 12 noon and 2.00 pm due to work commitments.
6.3One of the anticipated benefits of the introduction of flexi-time was a reduction in overtime costs in those areas of operation. This has not been analysed. It is recommended that this information is produced and assessed to coincide with the further testing Internal Audit will undertake at the end of 2011.
7.Conclusion
7.1It is for the Corporate Management Team to consider the options and decide what action requires to be taken in conjunction with Human Resources. Requirements to adhere to policy and any changes thereof should be communicated to all staff by means of a memo in the name of the Chief Executive. This should ensure that flexi-time arrangements are thereafterconsistently implemented throughout the Council.
8.CMT Agreed Course of Action
8.1All recommendations of the report were agreed with the flexitime policy applying to all staff participating in the scheme who are part of Single Status.
8.2Chief Officers are not officially part of the scheme and accordingly reference to Chief Officers would be removed from the report. The Chief Executive will engage with Chief Officers in relation to this matter.
8.3The flexitime policy may be subject to further review by CMT at a later date.
8.4It was agreed that the current situation whereby staff worked flexitime at the weekend could continue if this suited both staff and management. This would require due consideration and approval by Heads of Service / HRper recommendation 5.9 agreed in 8.1.
8.5Revised wording in 6.2 with regard to core time was agreed.
8.6A follow-up review would be undertaken by Internal Audit late in 2011 targeting areas where non-compliance was identified. An analysis of overtime costsin areas where flexi-time is in operation would be undertaken by Human Resources to coincide with this.
8.7A memo would be prepared by Human Resources to be issued in the Chief Executive’s name highlighting the issues identified and the requirement to observe the requirements of the Flexitime Policy by 31st March 2011.
Date:4th March2011Report No: IAR/CR/FT
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