Internal Audit of Recruitment and Hiring

Report Summary

The objective of this audit is to provide the CEO and Board of Directors with assurance that the framework of governance, policies, structures and systems and processes for recruiting, hiring and promotions have been suitably designed and that the internal controls were effectively applied. The purpose of the audit was also to identify any gaps and make practical recommendations to improve the management of human resources within PPP Canada.

PPP Canada has established organizational structures and oversight bodies to guide the management of recruitment, hiring and promotion. Roles and responsibilities are clear and recruitment, hiring and promotion activities are performed with appropriate involvement of the Board. More specifically, the audit found that PPP Canada has implemented a variety of measures to ensure recruitment and hiring activities are appropriately applied and monitored. There are improvements that have been recommended to add more structure to the recruitment and hiring process.

Recommendations

Management Responses

We recommend that management monitor the files to ensure that documentation is complete and that supporting documentation is kept in the file for audit trail purposes.

PPP Canada agrees with the audit recommendations that further refinements are required surrounding the completeness of documentation with respect to HR files. The Strategy and Organizational Development (S&OD) Business unit will develop a formal checklist that will accompany all HR files. The supporting checklist will include the list of core document requirements and notes on the status of incomplete files. Furthermore, each file will be reviewed and signed by VP S&OD to ensure completeness.

We recommend that PPP Canada further define and articulate staffing requirements for all of the individual business unit plans as well as in the corporate plan.  

PPP Canada agrees with the audit recommendation that strategic and operational planning and reporting require further integration of HR requirements.

At the strategic level, PPP Canada has made significant progress in integrating HR requirements in corporate planning and reporting processes through the corporate plan and the annual report. PPP Canada will continue to articulate HR requirements through the strategic planning and reporting process and will continue to include HR management as an agenda item for discussion on all future management retreats.

At the operational level, PPP Canada has continued to enhance its business planning process through the development of integrated HR business unit plans. The objective of the unit plans is to clearly articulate the priorities and commitments that each unit will establish to support the achievement of PPP Canada’s strategic objectives. A key element of the business unit plans includes the identification and allocation of HR and financial resources to priorities and commitments. PPP Canada will continue to develop and monitor performance on implementation of the integrated HR business unit plans and modify/refine as appropriate.

We recommend that Management develop regular reports on key human resources statistics such as current staffing levels, unstaffed positions, departures, turnover rates in order to assist with the planning and decision-making process.

PPP Canada agrees with the audit recommendation that management should develop HR performance measures and monitor and report on overall HR performance.  The VP S&OD currently prepares data for all positions currently staffed and provides this to Management along with departures.

The VP S&OD will continue to work with all VPs to strengthen PPP Canada’s human resources performance tracking measures with the purpose of tracking critical HR data and statistics.

The VP S&OD will conduct an internal environmental scan in advance of the annual planning process in order to inform future staffing requirements, corporate and business unit planning, resource allocation and support corporate and operational HR performance measurement.