Time and Attendance Review

Time and Attendance Review

February 2010

Contents

Synopsis

Key departments of the Integrated business

Current procedures-Overview

Comments on current procedures

Key Audit findings-Issues arising during the audit process

Key Audit findings (Plane Handling and Aviance)

Recommendation Introduction to the TAC Sheet Central Payroll Function Access database Aviance

Conclusion

Synopsis

Total salary costs £48 million Time and attendance represents a significant cost to Plane Handling Limited The operations of Plane Handling have recently been merged with certain business

units previously operated by Aviance (following the acquisition of Plane Handling by Dnata from Go Ahead Group) resulting an increase of headcount from 800 to 1600

An audit has been performed firstly to review, assess and evaluate the current procedures of Plane Handling and Aviance departments taken over.

Secondly to design new procedures which would ensure that time and attendance is recorded accurately for the enlarged organisation

Key departments of the Integrated business

Cargo B549 Southpoint Cargopoint/West Point Manchester Radius Park

Ground Handling Ramp

Ramp (Plane Handling) Ramp (Aviance)

Customer Services (Terminal 3 and 4) Operations and Baggage Transport Heathrow T3 Freight

Ground Handling

Ground Handling

Ramp Terminal 3(Including Aviance Ramp)

Customer Services(Terminal 3 and Terminal 4)(Previously operated by Aviance)

Operations & baggage (previously operated by Aviance)

Cargo

Cargo

B549 Southpoint ManchesterTransportCargopoint

T3 Freight

(Previously operated

by Aviance)

Radius Park

Current procedures-Overview

Time is planned in Roster by the duty Managers in consultation with the business Managers

Shift Managers maintain a daily or Weekly sign-in sheet to record all

exceptions on daily basis and pass it on to the administrators for processing into the payroll system. The duty managers also

update the Roster at the same time

The administrators post the time into payroll system on daily basis using the daily sheets or weekly sheets

maintained by the duty managers

The Operation/terminal Mangers authorise time by forwarding the email

sent to them by the Shift managers

Comments on current procedures

Plane Handling Overall the system is “re-active” and not “pro-active” No proper reconciliation maintained from sign-in sheets to the payroll database Poor Culture No verification done by the Operation Managers at the authorisation stage Review is not performed at different level The sign in sheet are not always signed by the duty managers furthermore time is posted to payroll for which there is no corresponding entry

in the sign-in sheet The managers man-hour analysis do not agree to the payroll database It should also be noted that there are few weaknesses in the Access database program which need to be considered

The system does not record the time and date, this in turn could mean that anyone could post a non-genuine time in the system (Possible fraud)

The central payroll function at Radius Park is also bit disorganised with no clearly defined responsibilities

Aviance Similar In addition to above also noted the following

Disorganised Lack of clearly defined responsibilities within the department Certain tasks duplicated which in turn means that there is a a surplus admin staff/capacity

Key Audit Findings-Issues Arising during the audit process

It has been not been an easy process to audit the departments due to lack of supporting information available

Furthermore there has been difficulty in reconciling information provided to me by the departments due to missing information

The process was far more challenging with Aviance due to the following Incorrect dates on scorecard spreadsheet Duplication of tasks Sign-in process almost absent Fairly disorganised Documents not signed off consistently It was very time consuming to substantiate a recondition difference

Key Audit Findings-Plane Handling

Hours per Managers Direct labour analysis

Hours recorded in Payroll database

Difference Financial Impact£

B549 7,031 7,589 558 8,370

Southpoint 3,550 4.042 492 7,380

Cargopoint 14,394 15,408 1,015 15,225

Transport* 10,374 11,867 1,493 22,395

Ramp Outstanding Outstanding Outstanding OutstandingChasing Stewart Salmon

Radius Park Outstanding Outstanding Outstanding Outstanding

Total 53,370

Transport Directly labour figures have been apportioned to adjust the weekly figures to monthly figures

Key Audit Findings-Plane Handling (formerly Aviance)

Hours per Managers Direct labour analysis

Hours recorded in Payroll database

Difference Financial Impact£

Customer Services T3 Outstanding Outstanding Outstanding Outstanding

Customer ServicesT4

Outstanding Outstanding Outstanding Outstanding

RAMP & T3 Spur(4 months review)

27,197 29,360 2,163 32,445

Baggage(4 months review)

1,502 1,594 92 1,380

Total 33,825

Recommendations

Introduction of the “TAC” Sheet

Central Payroll function at Radius Park

Review of Access Database

Review of Surplus administrators at Aviance

Introduction tothe “TAC” Sheet

It is proposed that with effect from 1 March 2010, all departments of the integrated business should use a new template for recording time called the “TAC SHEET” I.e. “Time and Attendance Control sheet" (See appendix 1,2 and 3)

Key features of the “TAC Sheet” It has a good audit trial Signed by Supervisors and Managers Declaration Organised in 52 weeks Review at different levels

Standard procedure followed by all the departments Reliable More accurate-This will not allow unauthorised time to be recorded in the system Efficient-This will release time from administrators currently performing certain task

which are adding no value to the business and are being done just because historically they have been done

“I confirm that I have reviewed the monthly (time and Attendance) and agreed it to the payroll database “

Introduction to the “TAC” Sheet

The template should be signed on weekly basis by the duty/shift Managers At the end of each month the weekly reports should be reviewed by the Operations

managers Managers review needs to be more “pro-active” i.e. Ensure that all weeks of the month have been signed off by the duty

managers Manager should you also make sure that monthly payroll figure agree to the

control sheet before authorising the time The departments would be audited on weekly basis for the month of March to

ensure that departments understand the new procedures and also to confirm that the departments are complying with the new procedures

Central Payroll Function

More defined responsibilities Introduction of Standard procedures Checklist Better organisation Reconciliation spreadsheet Revised timetable

Access database

The current payroll database system does not provide the time and date of when the hours have been entered into the system, this could mean that additional overtime hours could be posted at a later stage with no audit trail, this in turn could mean that fraudulent time could be entered

It is proposed that we modify the database to record the name of the person along with the date and time entering man-hours into the system

This will prevent any anyone from entering fraudulent time

Aviance

Currently some of the tasks are being duplicated at Aviance

There will be surplus administrators-As the new procedures have been designed to ensure MAX efficiency

Conclusion

These measures will have quantum Impact on the Integrity and flow of Information for all the departments and the Time and Attendance costs for Plane handling Limited going forward

However help needed from Departments

Team effort !