But seriously, karma at least has an individual tracking component that allows one to gain status in the community

In order to be an effective incentive system, house points would necessarily need to be awarded in social circumstances were other students can track them. And in practice that's usually how they're awarded. Points are given out in front of the class so all of the student's classmates can see them instead of privately. Some of this may be because teachers primarily interact with students in classes, but even private events which earn house points are announced publicly later.

Functionally, in canon, the house point system physically updates as soon as anyone authorized says "10 points to Gryffindor." Since it's auto-updating I'd be surprised if they don't track the reasons why as well in a magic ledger or something. When teachers were in strong contention for the house cup, they would give out house points on the flimsiest excuses, but they'd always have a reason for it, which implies that it's tracked. Otherwise teachers would subtract 50 points because 'potter looks stupid' when they're alone in the lavatory instead of taking 10 points for backchat while in class to unfairly win the house cup.