Human Resources Report January 21, 2016

2015 Year End Review

With a new Human Resources Director in place, the University began a review of the human resources operation to identify issues that need to be corrected, processes that need to be reviewed and improved, and structural changes that need to be implemented.

The most significant immediate issues identified as a part of the Human Resources department review are related to employee retirement accounts and timely payments to vendors.

• Reconciliations of employee retirement accounts have not been accurately completed since 2012.
• Past due invoices from the retirement systems related to these inaccuracies have totaled over $83,000 to date with a potential liability of up to $350,000.
• Payments for Unemployment Insurance have been late multiple times.
• Payments for employee health insurance, life insurance, and other benefits have not been timely.
• Approximately $500,000 in past due invoices have been identified and paid since October of 2015.

As a result, the Human Resources department began a number of initiatives to address some long-term problems.

• Began an audit and review of all contributions and reports to the Kentucky Employees Retirement System and the Kentucky Teachers' Retirement System. This review also includes contributions to optional retirement plans. This review will cover the period from 2012 to the present. It is expected to take approximately six to eight weeks to complete.
• Issued a Request for Proposals for a new broker for employee health insurance and other employment benefits. The contract will be in place by February 8, 2015 so a new broker will be in place to assist the University with the plan development process for the plan beginning July 1, 2017.
• Began mapping the hiring process, onboarding and orientation process, and the payroll process.
• Anecdotal information from University employees is that customer service has improved. A survey will be developed to evaluate customer service and to determine other service deficiencies.
• Developed a calendar for all payments and insure that payments are made on time.

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