An Audit Report on Human Resources Management at Health and Human Services Agencies
August 2008
Report Number 08-047
Overall Conclusion
The Health and Human Services Commission (Commission) should improve its compliance with laws, policies and procedures when carrying out human resources functions for all five of the State's health and human services agencies (collectively referred to as the "Enterprise agencies"). A strong human resources management process is essential to the Enterprise agencies, which employ approximately 50,000 individuals. In fiscal year 2007, Enterprise agency payroll and payroll-related costs totaled $2.2 billion (see Appendix 2 for additional information).
The Commission should improve its compliance with training requirements for Enterprise agency employees and supervisors. Ninety-two percent of the Enterprise agency supervisors hired between September 1, 2006, and March 31, 2008, had not completed one or more of the Enterprise-wide required training courses. Additionally, only 43 percent of Enterprise agency employees hired during that same time period had completed one or more Enterprise-wide required training courses. The lack of adequate training may expose the Enterprise agencies to risks such as lack of employee productivity and litigation. During this audit, the Commission began to identify and address the training needs of Enterprise agencies.
The Commission also should improve controls over its process for identifying and monitoring overpayments to terminated Enterprise agency employees. The Commission reported that it continued to pay 1,229 individuals whose employment at Enterprise agencies had been terminated in fiscal years 2007 and 2008. Those payments totaled $738,192 (as of May 31, 2008).
The Commission should improve its monitoring of emergency leave granted because of the results of annual criminal background checks. The Commission reported that 43 employees were placed on emergency leave from September 2006 through July 2008 because their annual criminal background checks contained information that required further investigation. The length of time these employees were placed on emergency leave ranged from 3 hours to 343 days, with an average of 70 days on emergency leave. The Commission's Employee Relations Unit reported that it does not monitor the use of emergency leave related to criminal background checks.
While the Commission's procedures for hiring Enterprise agency employees are adequate, the Commission has not consistently followed those procedures. The Commission is in minimal compliance with certain federal and state requirements for the hiring of Enterprise agency employees. For example, the Commission does not consistently comply with the U.S. Department of Homeland Security's requirement to complete Employment Verification (I-9) forms, which document whether individuals are eligible to work in the United States. The Commission could not locate 52 of 150 (35 percent) I-9 forms that auditors selected for testing. Of the 91 forms the Commission could locate, 35 (38 percent) were not completed within 3 days of hire as required.
The Commission is in minimal compliance with its procedures for maintaining Enterprise agency employee records. For example, the Commission's personnel files contained protected or confidential information, such as medical documentation, that should have been maintained separately. Additionally, employee performance evaluations were not completed as required for 92 of 124 (74 percent) of Enterprise agency employees that auditors tested for the time period from September 1, 2006, through March 31, 2008.
The Commission is in substantial compliance with the requirements for several other human resources areas that auditors tested, including requirements for compensation and complaint resolution processes. For example, audit tests of Enterprise agency compensation determined that 99 percent of one-time merits and merit increases tested were awarded in compliance with state law.
Auditors sent a Web-based survey of human resources management practices to a random sample of Enterprise agency supervisors and employees. Survey results for supervisors indicated the need for additional training opportunities to effectively manage their responsibilities. Selected survey results are discussed in the individual chapters of this report, and Appendix 4 presents a summary of survey results.
Auditors also communicated other, less significant issues to the Commission in writing.
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