Manual Audit Process for Wage & Benefit Parity

Audit Standards:

Auditors will review suppliers' covered services agreements to determine the following:

1. If the supplier paid employees, at a minimum, the equivalent of the WBP rates in the agreement for the time period specified in the agreement;
2. If the agreement was amended to update the WBP rates, that supplier employee wage rates were also adjusted to reflect the new WBP rates;
3. If the WBP rates listed in the agreement match the WBP rates UC outlined for that location, job title, and time period;
4. If the agreement was in effect for the specific WBP rate period, that the agreement was amended to reflect the new WBP rates;
5. If actual rates paid to supplier employees were equivalent to WBP rates in effect for that period, regardless of whether the contract included appropriate WBP rates. 

The UC WBP rates are listed in the Wage and Benefit Parity Appendix (they may also be in a contract clause, amendment, statement of work, or purchase order) attached to each agreement for covered services, and the rates will vary depending on the type of service and worksite location.

Verification Standards:

1. WBP verification procedures must be performed by a licensed public accounting firm or the suppliers' internal audit department.
2. WBP verification procedures can only be performed by the supplier’s internal audit department if the internal audit function reports directly to an independent board.
3. If the WBP verification procedures are performed by a licensed public accounting firm, the accounting firm must have no affiliation with the supplier.
4. The supplier is accountable for ensuring the veracity of the audit report.

Auditors Instructions for the 2021, 2022 WBP Audits