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MANATEE COUNTY CLERK OF CIRCUIT COURT
INTERNAL AUDIT DEPARTMENT
AUDIT REPORT
OFFICE OF HUMAN RESOURCES
AS OF FEBRUARY 28, 1993
Page 1
MANATEE COUNTY CLERK OF THE CIRCUIT COURT
INTERNAL AUDIT DEPARTMENT
OFFICE OF HUMAN RESOURCES
A U D I T R E P O R T
I. INTERNAL AUDIT REPORT
A. Background........................................ 2
B. Purpose/Objectives; Scope; Methodology ........... 3
C. Irregularities, Abuse, or Illegal Acts;
Test of Compliance; and Statement on
Internal Control Structure........................ 4
D. Management Summary................................ 5-10
E. Audit Report Authorization........................ 10
F. Detailed Audit Findings........................... 11-38
G. EXHIBIT A: Specific findings and recommendations
for strengthening of the Manatee County
Personnel Policies, Rules, and
Procedures Manual...................... 39-49
H. EXHIBIT B: Specific findings and recommendations
for strengthening of the Operating
Policies and Procedures Manual of the
Office of Human Resources.............. 50-52
II. MANAGEMENT RESPONSE.....................................53-123
MANATEE COUNTY CLERK OF THE CIRCUIT COURT
INTERNAL AUDIT DEPARTMENT
OFFICE OF HUMAN RESOURCES
AS OF FEBRUARY 28, 1993
A U D I T R E P O R T
A financial, compliance, and operational audit of the Manatee County Office of Human Resources was conducted by the Internal Audit Department for the audit period November 1, 1991 through February 28, 1993. The audit was performed in conformance with Generally Accepted Governmental Auditing Standards, issued by the Comptroller General of the United States; and the Standards for the Professional Practice of Internal Auditing, issued by the Institute of Internal Auditors.
BACKGROUND
The Office of Human Resources provides general and specialized personnel services to all departments and county employees under the Board of County Commissioners. The office is divided into four divisions: the Employment and Employee Development Division, the Records Management Division, the Compensation Division, and the Employee Health Benefits Division.
The Employment and Employee Development Division provides support in recruitment, testing and selection of employees. The division is responsible for coordinating county-wide programs which inform, educate, motivate and recognize achievement of county employees. The Compensation Division and Records Management Division administer the classification/pay plan. The divisions conduct job analysis, recommend pay grades, conduct wage surveys, and analyze requests for pay adjustments. They revise and maintain job descriptions, analyze labor market trends, and develop and maintain procedures and practices for administration of the classification/pay plan.
The Employee Health Benefits Division has recently undergone an internal audit and will be excluded from this audit.
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PURPOSE/OBJECTIVE
The main audit objectives include, but are not limited to, the following:
- To verify accuracy and input timeliness of financial data, and reports processed and received by the Division.
- To verify an adequate system of internal control exists to safeguard assets, maintain the integrity of reports on operations, and provide adequate evaluation of departmental objectives and responsibilities.
- To verify compliance with significant laws and regulations, including Florida Statutes, federal regulations, county ordinances, resolutions, policies, and signed agreements or contracts.
- To evaluate operational efficiency and effectiveness.
SCOPE
The financial audit scope consisted of a review of accounts, financial transactions, and reports of the Office of Human Resources for the period November 1, 1991 through October 31, 1992. Additional testing was performed through February 28, 1993.
The compliance audit scope consisted of a review of the policies and procedures, Florida Statutes, federal regulations, county ordinances, resolutions, contracts, and agreements made by the Office of Human Resources.
The operational audit scope consisted of a review of the Office of Human Resources' internal controls and the effectiveness and efficiency of its operation during the audit period November 1, 1991 through February 28, 1993.
METHODOLOGY
Internal control evaluations were accomplished by flowcharting key operations, discussions with management and staff, observations, analytical and substantive testing of individual internal controls.
Risk analysis was used to establish priorities of audit objectives. Statistical sampling was used whenever appropriate to accomplish audit objectives.
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IRREGULARITIES, ABUSE, AND ILLEGAL ACTS
Except as noted in our audit report, no indications of irregularities, abuse, or illegal acts were discovered during the audit that could affect the Office of Human Resources for the audit period ending February 28, 1993.
TEST OF COMPLIANCE
Except as noted in our audit report, tested items were in compliance with significant Florida Statutes, ordinances, laws, personnel policies, other policies established by the Board of County Commissioners and other applicable laws and regulations.
Nothing came to our attention as a result of specified procedures that caused us to believe that the untested items of the Office of Human Resources failed to comply with applicable laws and regulations. However, it should be noted that our audit was not directed toward obtaining knowledge of noncompliance for areas not specifically tested.
STATEMENT ON INTERNAL CONTROL STRUCTURE
In planning and performing our audit of the Office of Human Resources for the period November 1, 1991 through February 28, 1993, we considered its internal control structure in order to determine our auditing procedures for the purpose of this report on the Office of Human Resources. As a result, we did note significant matters involving the internal control structure and its operations that we consider to be reportable conditions under standards established by the U.S. General Accounting Office, Government Auditing Standards. Reportable conditions involve matters relating to significant deficiencies in the design or operation of the internal control structure, that in our judgment, could adversely affect the organization's ability to record, process, summarize and report on data consistent with the intent of management.
Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions, as defined above. In addition because of the inherent limitations in any internal control structure, significant deficiencies in the design or operation of the internal control structure may exist and not be detected. However, we believe the conditions identified in our audit report constitute reportable conditions as previously defined.
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MANAGEMENT SUMMARY:
One of the main objectives of the Office of Human Resources is to provide a fair and open process to allow all qualified candidates the opportunity to be selected as Manatee County employees. Our audit revealed a need to strengthen internal controls in the Office of Human Resources to achieve such a fair and open system and we make many recommendations in this report to assist management in moving toward achievement of this goal. Our audit found a weak, ambiguous and ineffective manual of policies and procedures which allows inconsistent application. In addition, we found that management places a high priority on facilitating external requests and low priority on assuming responsibility for reviewing or monitoring compliance with personnel rules. Internal Audit believes Manatee County would benefit by an Office of Human Resources that places a higher priority on monitoring and assuring compliance with personnel policies and procedures. This can be accomplished by providing clear direction through revising and strengthening of the current policies and procedures, and by taking an active role in assuring compliance and consistency of interpretation with personnel rules.
The hiring process often involves initially hiring temporary employees, without fair and open competition, and subsequently moving these employees into permanent positions. This process by-passes hiring competition for permanent employment and generally gives the appearance of favoritism in hiring. We found a list or pool of eligible temporary employees has not been established, despite the assertion on most of the hiring forms stating that the employee was hired from a pool of qualified candidates. In this report we recommend policies and procedures be developed to strengthen the controls over hiring of temporary employees to prevent future abuse and appearance of favoritism. (See Detailed Audit Finding #1, at pages 11 & 12) In addition, we tested the employment of temporary employees and found noncompliance with the Florida Retirement System requirements. We recommend the Office of Human Resources monitor and enforce the requirements of the Florida Retirement System to eliminate the inappropriate use of temporary employment practices. (See Detailed Audit Finding #2, at pages 13 & 14)
Internal Audit reviewed the currently adopted Manatee County Personnel Policies, Rules and Procedures manual. We found this manual lacked clarity, assignment of responsibilities, and is generally weak and subject to inconsistent interpretation. Without a clear statement of personnel rules, the appearance of favoritism and associated liability exist. We recommend the Manatee County Personnel Policies, Rules and Procedures manual be substantially
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MANAGEMENT SUMMARY (Continued):
revised to provide clarity, consistency of interpretation, and assignment of responsibilities which can serve as clear guidance to Manatee County employees. We have provided a separate and detailed set of specific findings and recommendations for strengthening of this manual in Exhibit A, pages 39 through 49 of this report. (See Detailed Audit Finding #3, at pages 15) In addition, we found that the Manatee County Personnel Policies, Rules and Procedures manual was adopted without a resolution, without rescinding outstanding prior resolutions and without provisions for updates. In this report we recommend a resolution be formally adopted with update provisions and prior resolutions rescinded. (See Detailed Audit Finding #22, at page 36)
Internal Audit found another hiring practice that has been allowed to occur in Manatee County departments that distorts staffing levels and personnel needs. A practice of "underencumbering" is allowed, despite a lack of policies and procedures for this practice, where vacant positions are filled with unqualified employees at reduced pay rates from those designated for the vacant positions. Staffing levels and personnel needs are approved by the Board of County Commissioners and we believe this practice of "underencumbering" misrepresents and distorts true staffing needs to the Board of County Commissioners. In this report, we recommend the practice of "underencumbering" of positions no longer be facilitated by the Office of Human Resources so that true staffing needs can be represented to the Board of County Commissioners. (See Detailed Audit Finding #4, at page 16)
The operating procedures for the Office of Human Resources have not been developed for the administration and systematic review of the County's classification and pay plan, as required by Manatee County policy. We also found that these reviews are not performed systematically but are performed only upon individual requests and that these reviews are not processed timely. Without systematic review and administration of the classification and pay plan, inequities and the appearance of favoritism develop. We recommend the Office of Human Resources develop procedures and comply with policy regarding the administration and systematical review of the County's classification and pay plan. (See Detailed Audit Finding #5, at page 17)
Preferential treatment of certain employees exists that does not conform to policies and procedures and has been allowed by the Office of Human Resources in the sick leave policies and
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MANAGEMENT SUMMARY (Continued):
procedures. Some of the instances occurred in the Office of Human Resources. We recommend the Office of Human Resources develop standardized policies and procedures and maintain administrative directives for the clarification and uniform interpretation of existing policies related to sick leave. (See Detailed Audit Finding #6, at pages 18 & 19)
Retroactive lump-sum payments to employees for delayed merit increases and reclassification often lacked the documentation supporting the reason for the delay in processing the evaluations and recommendations for increases. We also found two instances of retroactive payments processed by the Office of Human Resources that did not conform to the policies and procedures of Manatee County regarding eligibility for such payments. We recommend the Office of Human Resources obtain and maintain complete information regarding retroactive payments. We further recommend the Board of County Commissioners formally approve the exceptions to the policies and procedures that occurred to eliminate the need for repayment. (See Detailed Audit Finding #7, at page 20)
Our audit found the Employee Handbook provided to new employees by the Office of Human Resources has not been updated to reflect current policies and procedures. In this report we recommend the Employee Handbook be updated and we further recommend the Office of Human Resources consider distribution of the Manatee County Personnel Policies, Rules and Procedures manual to all employees due to the numerous changes that have occurred. (See Detailed Audit Finding #8, at page 21)
Internal Audit reviewed the operating policies and procedures of the Office of Human Resources and found the manual to be inadequate to provide guidance to employees, contains weak controls and outdated information. We recommend the operating policies and procedures be revised to provide clear guidance to employees. We have provided a separate and detailed set of specific findings and recommendations for strengthening this manual in Exhibit B, on pages 50 through 52 of this report. (See Detailed Audit Finding #9, at page 22)
Job descriptions for County employees were not always reviewed, approved, appropriate for the positions, and were often in draft form. We recommend the Office of Human Resources strengthen the control over review, approval and finalization of job descriptions. (See Detailed Audit Finding #10, at page 23)
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MANAGEMENT SUMMARY (Continued):
Our audit found weak internal controls over the tracking of documentation for applicants interviewed for County positions. We were concerned with the discovery of two fabricated interview sheets for individuals applying for positions in the Office of Human Resources. In this report we recommend internal controls be strengthened for the preparation and tracking of interview documentation. (See Detailed Audit Finding #11, at page 24)
Employee performance evaluations were not always performed timely, some of the evaluations were misfiled or missing. While it is the responsibility of department managers to perform the evaluations, we recommend the Office of Human Resources document the delays and verify proper filing of these documents in personnel files. (See Detailed Audit Finding #12, at page 25)
Our audit found variances between personnel records and time cards for terminated employees. In this report we recommend the Office of Human Resources strengthen review of personnel file documentation for terminated personnel. (See Detailed Audit Finding #13, at page 26)
The Professional Development Program for all Manatee County employees requires the Office of Human Resource to track and assure all requests meet policy requirements. We found weak internal controls over monitoring of this program and recommend increased internal control over monitoring of this program. (See Detailed Audit Finding #14, at pages 27 & 28)
We found that the Office of Human Resources has not developed policies and procedures for a sick leave pool program and in this report we recommend this program be developed to comply with the Board of County Commissioners' directive. (See Detailed Audit Finding #15, at page 29)
The current budget for the Office of Human Resources has understated its personnel costs. In addition, we found that formal policies and procedures have not been developed for the County-wide education program which development has been directed and funds appropriated by the Board of County Commissioners for two fiscal years. By not implementing the funded program in a timely manner, Manatee County employees are denied program benefits which were adopted and funded by the Board of County Commissioners. In this report we recommend the full personnel costs be budgeted for the Office of Human Resources and the education program for County employees be administrated effectively. (See Detailed Audit Finding #16, at page 30)
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MANAGEMENT SUMMARY (Continued):
Our audit found inconsistent policies and procedures for the verification of employees' college degrees. Our testing revealed that the Office of Human Resources primarily verifies college degrees on a requested basis and does not always process this verification timely. We recommend the Office of Human Resources verify all college degrees for employees hired by Manatee County. (See Detailed Audit Finding #17, at page 31)
The Office of Human Resources does not monitor and rescind "Acting Status" on a timely basis and does not pursue timely filling of vacant Manatee County positions. We found 67% of employees remain in "Acting Status" for longer than six months, 39% remain in "Acting Status" for longer than one year. We recommend the Office of Human Resources monitor, rescind, and pursue hiring of employees to minimize the time frame during which employees serve in "Acting Status". (See Detailed Audit Finding #18, at page 32)
The Director of Human Resources has not complied with the County's personnel policies and procedures regarding prior approval and documentation of overtime hours or scheduled extra hours of employees in his department. In this report we recommend compliance with the policies and procedures regarding prior approval and documentation of work schedules. (See Detailed Audit Finding #19, at page 33)
Our audit found the Office of Human Resources does not have a current contract with a company providing unemployment compensation services and does not have an inter-local agreement for providing pre-employment health screening. We recommend obtaining new contracts and Board of County Commissioners' approval for providing these services. (See Detailed Audit Finding #20, at page 34)
The Office of Human Resources is responsible for obtaining prior approval of expenditures for awards given to County employees; however, testing revealed that prior approval is not always obtained. We also found discrepancy between the Ordinance for awards and policies regarding cash awards. We recommend the Office of Human Resources comply with the awards procedures and we also recommend the current procedures be ammended to allow for monetary awards. (See Detailed Audit Finding #21, at page 35)
The computer employment records maintained by the Office of Human Resources is incomplete, contains input errors and information conflicting with personnel records. In this report we recommend input verification and accuracy controls be strengthened. (See Detailed Audit Finding #23, at page 37)
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MANAGEMENT SUMMARY (Continued):
We reviewed the computers used by the Office of Human Resources to track job applications and found the computer system to be inefficient as a management tool. We recommend improvements to automation. (See Detailed Audit Finding #24, at page 38)
Detailed audit findings and recommendations can be found in the main body of this report (pages 11 through 38). EXHIBIT A: Specific detail of recommended changes to the Manatee County Personnel Policies, Rules, and Procedures Manual can be found on pages 39 through 49. EXHIBIT B: Specific detail of recommended changes to the operating policies and procedures manual of the Office of Human Resources can be found on pages 50 through 52.
Management's response to detailed audit findings can be found on pages 53 through 123. Other minor findings, not included in this report, have been discussed with management or corrected during the audit. We would like to thank the Office of Human Resources's personnel and management for the cooperation and courtesy afforded our auditors throughout the audit.
This audit report has been reviewed and authorized by:
Richard J. Orienti, CIA, CFE R. B. "Chips" Shore
Director of Internal Audit Clerk of the Circuit Court
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DETAILED AUDIT FINDINGS
+-------------------------------------------------------------+
01.THE HIRING PRACTICES FOR OPS/TEMPORARY POSITIONS CIRCUMVENT THE NORMAL HIRING PROCEDURES FOR PERMANENT POSITIONS AND GIVE THE APPEARANCE OF FAVORITISM. +-------------------------------------------------------------+
Governmental hiring, by its very nature, should be fair and open to all qualified candidates. Internal Audit reviewed the practices followed for the hiring of County employees. We found the initial hiring of OPS/Temporary positions and subsequent moving these employees into permanent positions by-passes open and fair hiring procedures and appears to promote favoritism. OPS/Temporary positions are filled without open competition and these employees are often placed into permanent positions once the OPS/Temporary status expires. We reviewed the hiring procedures used for OPS/Temporary employees and found policies and procedures related to the selection of OPS/Temporary candidates are not enforced to insure that all applicants are given equitable treatment. In addition, changes in staffing levels require approval by the Board of County Commissioners; however, OPS/Temporary positions are not required to be approved by the Board of County Commissioners or reviewed by the Office of Financial Management.
Internal Audit also found the Human Resource Director has not established a pool or temporary eligibility list for qualified candidates, despite the assertion on most of the Personnel Action Request (PAR) Forms for OPS/Temporary personnel that the employee was hired from a pool of qualified candidates.
Appearance of favoritism in hiring practices specifically included:
- the hiring of relatives of other County employees,
- the preferential treatment without competition in the hiring of candidates based on external pressure,
- the preferential treatment of continuous employment under the OPS/Temporary guise.
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DETAILED AUDIT FINDINGS
+------------------------------------------------------------+
01. THE HIRING PRACTICES FOR OPS/TEMPORARY POSITIONS
CIRCUMVENT THE NORMAL HIRING PROCEDURES FOR PERMANENT
POSITIONS AND GIVE THE APPEARANCE OF FAVORITISM.
(Continued)
+------------------------------------------------------------+
Internal Audit recommends the Office of Human Resources establish policies and procedures for the selection and employment of OPS/Temporary candidates. We also recommend management establish a list of eligible temporary candidates who have been determined to be qualified candidates. We further recommend the active review and monitoring of OPS/Temporary positions to assure these positions are not utilized to circumvent open and fair hiring practices whose circumvention gives the appearance of favoritism in employment.
It was also noted Manatee County has contracted with three temporary employment service agencies. Internal Audit recommends the Office of Human Resources consider the exclusive use of these contracts in order to avoid further abuse and the appearance of favoritism through the hiring of OPS/Temporary positions.
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DETAILED AUDIT FINDINGS
+-------------------------------------------------------------+
02. OPS/TEMPORARY POSITIONS APPEAR TO HAVE CIRCUMVENTED
THE SIX CONSECUTIVE MONTH EMPLOYMENT CRITERIA
ESTABLISHED BY THE FLORIDA RETIREMENT SYSTEM.
+-------------------------------------------------------------+
The Florida Retirement System requires:
"Membership in the Florida Retirement System shall be compulsory if the employee is filling a full-time or part-time regularly established position. An employee filling a regularly established position shall be enrolled on the first day of employment. A regularly established position in a local agency is an employment position which will be in existence beyond six (6) consecutive months. A temporary position is an employment position which will not exist beyond six (6) consecutive calendar months."
Internal Audit reviewed the practices followed by the Office of Human Resources for processing OPS/temporary positions and found positions that appear to have been deliberately misclassified, reclassified and used as training positions all of which circumvent the Florida State Retirement System criteria. Internal Audit found the following exceptions:
- 22 out of 42 or 52% of the OPS/Temporary employees' files examined misclassified positions as OPS/Temporary positions that should be classified as regularly established positions according to Florida Retirement System criteria.
- 14 out of 42 or 33% of the OPS/Temporary employees' files examined continued employment beyond six (6) consecutive months by changing the employee's job title. The paperwork submitted and processed appears to deliberately circumvent the six (6) consecutive month employment criteria established by the Florida Retirement System.
- 6 out of 42 or 14% of the OPS/Temporary employees' files examined found the individual was employed, separated and later re-employed into the previous position. Although the individuals' employment in the positions existed for less than six consecutive months, the position itself appears to qualify as a regular established position under Florida Retirement System's criteria.
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DETAILED AUDIT FINDINGS
+-------------------------------------------------------------+
02. OPS/TEMPORARY POSITIONS APPEAR TO HAVE CIRCUMVENTED
THE SIX CONSECUTIVE MONTH EMPLOYMENT CRITERIA
ESTABLISHED BY THE FLORIDA RETIREMENT SYSTEM.
(Continued)
+-------------------------------------------------------------+
- The Transit Division, with facilitation from the Director of Human Resources, was utilizing the OPS/Temporary employment period as a training and evaluation period for its Transit and Para-transit Operators. The Florida Retirement System does not consider the OPS/Temporary Transit Operator as a valid temporary position but rather as a regular position subject to retirement contributions. As of February 5, 1993, Internal Audit found five Transit Operators classified as OPS/ Temporary.
Three (3) employees were initially hired as OPS/Temporary and subsequently rehired to fill regular positions with the same job classification as the OPS position. This appears to be an extended probationary period.
Internal Audit recommends the Office of Human Resources strictly adhere to the Florida Retirement System's rules and inform all departments of the appropriate uses for OPS/Temporary positions and the financial implications for violations. Internal Audit further recommends management establish policies and procedures to monitor and review OPS/Temporary positions to assure compliance. We also recommend management stop facilitating the practice of hiring OPS/Temporary positions as a training function or as an extended probationary period for regularly established positions.
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DETAILED AUDIT FINDINGS
+------------------------------------------------------------+
03. MANATEE COUNTY PERSONNEL POLICIES, RULES, AND
PROCEDURES MANUAL DOES NOT PROVIDE CLEAR GUIDANCE
FOR COUNTY EMPLOYEES, IS VAGUE, AMBIGUOUS AND LACKS
ASSIGNMENT OF RESPONSIBILITY FOR COMPLIANCE WITH
POLICIES.
+------------------------------------------------------------+
Internal Audit reviewed the Manatee County Personnel Policies, Rules and Procedures manual, compared this manual with similar manuals in other Florida counties, and conducted a statistical survey of Manatee County Employees. We found the manual does not provide clear guidance for county employees. In addition, the manual contains information that is vague, ambiguous and weak in defining responsibilities, documentation required and maintenance of the documentation used to verify compliance. We have provided detailed and specific comments and recommendations to areas where the manual can be strengthened, language may be clarified and deficiencies may be eliminated. We have included these specific recommendations on Exhibit A on pages 39 through 49 of this report.
Internal Audit recommends the Office of Human Resources review and revise the Manatee County Personnel Policies, Rules and Procedures manual to clearly define policies, responsibilities, documentation, and retention of the documentation required.
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DETAILED AUDIT FINDINGS
+------------------------------------------------------------+
04. THE OFFICE OF HUMAN RESOURCES ALLOWS FOR
UNDERENCUMBERING OF EXISTING COUNTY POSITIONS
RESULTING IN MISREPRESENTATION OF APPROVED
STAFFING LEVELS.
+------------------------------------------------------------+
Internal Audit reviewed employee files and found county employees placed in higher positions for which they are neither qualified nor are they compensated according to the position's pay grade. This practice of "underencumbering" results in county positions being filled with people not qualified for the position they occupy, excess funds in personnel appropriations for departments and misrepresentation of staffing needs which are approved by the Board of County Commissioners. Internal Audit did not find any policies or procedures to allow this staffing level manipulation practice facilitated by the Office of Human Resources. Internal Audit found the following exceptions:
- 10.60% or 7 out of 66 new hired employees in the sample selected were placed in positions which underencumbered positions of higher classifications and pay grades.
- 6.15% or 8 out of 130 active employees in the sample selected were placed in positions which underencumbered positions of higher classifications and pay grades.
Internal Audit recommends the Office of Human Resources no longer facilitate the practice of underemcumbering positions to properly reflect the approved staffing levels and needs approved by the Board of County Commissioners.
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DETAILED AUDIT FINDINGS
+-----------------------------------------------------------+
05. OPERATING PROCEDURES DO NOT EXIST FOR THE
ADMINISTRATION AND SYSTEMATIC REVIEW OF THE
CLASSIFICATION AND PAY PLAN.
+-----------------------------------------------------------+
The Manatee County Policy, Rules and Procedures manual assigns responsibility to the Director of Human Resources for reviewing all positions assigned to the classification and pay system on a routine basis to ensure equity, and for the periodic and as-needed reviews of the pay grades for all classifications. Internal Audit found that there are no operating procedures for the administration and systematic review of the classification and pay plan. Internal Audit found the staff of the Human Resources Department has been limited to reviews and evaluations by department's individual audit requests and evaluations required as a result of departmental reorganizations. We also found these special requests are not processed timely with approximately 35% of those reviewed requiring longer than 90 days to complete. Without a systematic review process and administration of the County's classification and pay plan, inequities and the appearance of favoritism develop.
Internal Audit recommends the Office of Human Resources develop operating policies and procedures to comply with the Manatee County Policies, Rules and Procedures manual which includes the administration and systematical review of the classification and pay plan and the performance of systematic and routine evaluations to ensure proper classification and placement of employees.
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DETAILED AUDIT FINDINGS
+------------------------------------------------------------+
06. THE OFFICE OF HUMAN RESOURCES ALLOWS ABUSES IN THE
SICK LEAVE POLICIES AND PROCEDURES RESULTING
IN PREFERENTIAL TREATMENT FOR SELECTED EMPLOYEES.
+------------------------------------------------------------+
Internal Audit reviewed the Office of Human Resources' policies and procedures related to sick leave and found several abuses that appear to be preferential treatment given to selected employees. Some of these abuses occurred within the Office of Human Resources. Specific examples of instances that are not addressed in the Personnel Policies, Rules and Procedures manual included:
- A probationary employee of the Office of Human Resources was given permission by the Human Resource Director to make up sick leave hours by working at home, working through lunches, and altering schedules. In addition, Internal Audit found other examples where selected individuals were allowed to work at home to compensate for sick leave where the employee did not have sufficient sick leave hours earned. The appearance of favoritism exists since this practice is not available to all County employees.
- A former full-time employee of the Office of Human Resources was allowed to reduce the number of hours paid and sick leave used in order to extend benefits during her maternity leave. If this employee had been required to report the full 80 hours per pay period that this position required, she would not have had enough vacation and sick hours left to cover her entire absence.
- A full-time Transit Department employee received payments for only 6.75 hours of sick leave per pay period since September 25, 1992. The payment of sick leave hours compensated for his dependent medical insurance coverage and allowed him to continue to receive county insurance benefits. This employee was kept on the county's payroll until he became vested with the Florida Retirement System on July 2, 1993, the effective date of his termination.
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DETAILED AUDIT FINDINGS
+------------------------------------------------------------+
06. THE OFFICE OF HUMAN RESOURCES ALLOWS ABUSES IN THE
SICK LEAVE POLICIES AND PROCEDURES RESULTING
IN PREFERENTIAL TREATMENT FOR SELECTED EMPLOYEES.
(Continued)
+------------------------------------------------------------+
Internal Audit recommends the Office of Human Resources develop standardized policies and procedures and maintain administrative directives for the clarification and uniform interpretation of existing policies related to sick leave. Developing stronger policies and procedures will minimize the appearance of preferential treatment to certain employees. We also recommend management take a more active role in reviewing and monitoring sick leave to ensure the consistent application to all employees.
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DETAILED AUDIT FINDINGS
+----------------------------------------------------------------+
7. RETROACTIVE PAY REQUESTS OFTEN LACK DOCUMENTATION
OF THE REASON FOR THE DELAY, AND INSTANCES WERE FOUND
WHERE RETROACTIVE PAYMENTS DID NOT CONFORM TO
POLICIES AND PROCEDURES.
+----------------------------------------------------------------+
Manatee County Personnel Policies, Rules and Procedure allow for retroactive pay adjustments. The retroactive pay adjustments are to be granted if it is delayed through no fault of the employees. Internal Audit reviewed retroactive pay requests and found 10.52% of employees' retroactive pay requests did not have a reason for the late filing of the merit increase after the evaluation date.
The Personnel Policies, Rules and Procedures manual states:
"Employees are eligible for retroactive pay adjustments... This does not apply to reclassification if the classification position did not exist prior to the claim for retroactivity, even though the employee may have been performing some duties of the new position."
Internal Audit found inappropriate retroactive lump-sum payments totaling $3,520 for two county employees who were reclassified. The employees were reclassified based on recognition of expanded job duties; however, the positions did not exist during the period for which the retroactive payments were made. Since the positions did not exist prior to the reclassification, the retroactive payments appear inappropriate and do not conform to the County's policies and procedures.
Internal Audit recommends the Office of Human Resources obtain and review all supporting documentation for completeness prior to processing retroactive payments for compliance with County policies and procedures. We further recommend the Board of County Commissioners formally approve the exceptions to the policies and procedures that occurred for the above individual employees to eliminate the need for repayment.
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DETAILED AUDIT FINDINGS
+-------------------------------------------------------+
8. THE EMPLOYEE HANDBOOK, DISTRIBUTED TO ALL NEWLY
HIRED EMPLOYEES, HAS NOT BEEN UPDATED.
+-------------------------------------------------------+
The Office of Human Resources distributes a copy of the County's Employee Handbook to all newly hired employees. Internal Audit found the Employee Handbook contains only excerpts of the personnel policies and procedures and was not updated to reflect current information in the sections pertaining to general Manatee County background information and to the sections related to Office and Department Descriptions. The October 1, 1992 Manatee County Personnel Policies, Rules and Procedures Manual has not been incorporated into the Handbook.
Internal Audit conducted a survey and found that several employees believed the County's Employee Handbook was the Manatee County Personnel Policies, Rules and Procedures Manual and are relying on the information it contains.
Internal Audit recommends the Office of Human Resources revise and update the Employee Handbook to reflect the adopted October 1, 1992 Manatee County Personnel Policies, Rules and Procedures Manual. Internal Audit also recommends the Office of Human Resources consider the distribution of the Manatee County Personnel Policies, Rules and Procedures manual to all personnel and new hires to allow all employees to become familiar with the County's policies and procedures relating to their employment.
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DETAILED AUDIT FINDINGS
+------------------------------------------------------------+
9. THE OFFICE OF HUMAN RESOURCES' POLICIES AND
PROCEDURES OPERATING MANUAL IS INADEQUATE,
CONTAINS WEAK CONTROLS AND OUTDATED INFORMATION.
+------------------------------------------------------------+
Internal Audit reviewed the policies and procedures operating manual for the Office of Human Resources and found the operating manual to be inadequate, with weak controls and outdated information. In addition, there was no policy or procedures for the periodic review or revision of the operating manual and no documentation for the manual's disbursement or updates.
Internal Audit also found there was no uniformity in the format of the manual. Most of the pages did not have an effective date. The pages were not numbered, there was no authorization section and it was noted the manual included numerous blank pages. Procedures included exhibits, which were not labeled or explained.
Internal Audit reviewed the operating manual and provided detailed comments and recommendations relating to areas of deficiencies. These comments are found in Exhibit B on pages 50 through 52.
Internal Audit recommends the Office of Human Resources review and revise the operating policies and procedures manual in order for the manual to provide the department with an effective management tool.
Office of Human Resources Audit Report
As of 2/28/93
August 17, 1993
Page 23
DETAILED AUDIT FINDINGS
+---------------------------------------------------------------+
10. JOB DESCRIPTIONS ARE NOT REVIEWED, APPROVED AND
FINALIZED.
+---------------------------------------------------------------+
Internal Audit verified all positions on the Allocated Position Listing as of March 12, 1993 to a corresponding job description in the Office of Human Resources. The following exceptions were noted:
- Job descriptions involving working with children do not list the child abuse registry screening as a requirement for employment as required.
- 16.59% or 71 of the total population of 428 job descriptions did not have the review and approval section completed.
- 5.37% or 23 of the total population of 428 job descriptions had been stamped "Draft".
Internal Audit recommends that the Office of Human Resources review all current positions to verify that job descriptions have been created, reviewed, and approved by the appropriate Department Director.
Office of Human Resources Audit Report
As of 2/28/93
August 17, 1993
Page 24
DETAILED AUDIT FINDINGS
+-------------------------------------------------------------+
11. SOME PERSONNEL INTERVIEW SHEETS WERE MISSING AND
SOME WERE FABRICATED.
+-------------------------------------------------------------+
Internal Audit reviewed a judgmental sample of 9 County positions hired during the audit period. The applications and interview sheets of employees interviewed but not hired were examined for reasonableness of qualifications and completeness of interview sheet. The following exceptions were noted:
- Two interview sheets of individuals who applied for the position of Emergency Communications Center dispatcher were not on file in the Human Resource Department. We also found a lack of tracking controls to assure employment candidates are interviewed by County Departments.
- Two interview sheets for individuals applying for positions in the Human Resources Department were fabricated and signed by the Personnel Management Specialist; however, the applicants were never interviewed.
Internal Audit recommends the Office of Human Resources develop stronger controls for tracking interview sheets sent to the county departments to ensure the applicants are given an equal opportunity to be interviewed. We also strongly recommend the Office of Human Resources ensure the integrity of all documents internally produced.
Office of Human Resources Audit Report
As of 2/28/93
August 17, 1993
Page 25
DETAILED AUDIT FINDINGS
+------------------------------------------------------------+
12. EMPLOYEE PERFORMANCE EVALUATIONS WERE MISSING,
MISFILED AND NOT PERFORMED ON A TIMELY BASIS.
+------------------------------------------------------------+
Internal Audit reviewed employee personnel files for completeness for the last five years ending February 28, 1993 and found the following exceptions relating to the Employee Performance Evaluations:
- 5.38% (7 out of 130) files examined for the last five years had Employee Performance Evaluations performed but were not in the files.
- 29.23% (38 out of 130) files examined for the last five years had Employee Performance Evaluations that were performed at least two months after their due date.
Internal Audit recognizes that the departments are ultimately responsible for the completion of the Employee Performance Evaluations; however, documentation was not available in the personnel files to support the causes of the delays.
Internal Audit recommends the Office of Human Resources establish operating procedures to ensure that supporting documentation is available to explain delays in the evaluation process. Internal Audit also recommends that careful attention be given to the filing of documents in the employee files.
Office of Human Resources Audit Report
As of 2/28/93
August 17, 1993
Page 26
DETAILED AUDIT FINDINGS
+-------------------------------------------------------------+
13. TERMINATED EMPLOYEE FILES WERE INCOMPLETE AND
CONTAINED INCONSISTENT DATA.
+-------------------------------------------------------------+
Internal Audit reviewed a statistical sample of 100 terminated County employee personnel files for completeness, reasonability, and consistency with the County's payroll data. The following exceptions were found:
- 45% (45 out of 100) of the Personnel Action Requests (PAR) forms had dates for the "last work day" which were inconsistent with the employees' time cards. 87% (39 out of 45) of the exceptions were temporary/OPS employees.
- 66% (66 out of 100) of the terminated personnel files did not contain an employment history summary sheet. 74% (49 out of 66) of the exceptions were temporary/OPS employees. Inserting the summary sheet in the personnel file after termination is a standard procedure.
- 10% (10 out of 100) of the terminated employees continued to receive time cards for two or more pay periods after the effective termination date. 100% of the exceptions were either temporary/OPS employees (6) or Civic Center employees (4) who remained on the payroll even though they had no scheduled work hours.
Internal Audit recommends the Office of Human Resources develop stronger controls to ensure that supporting documentation from terminated employees is accurate and completed on a timely basis. Internal Audit also recommends establishing procedures for the periodic review of OPS/Temporary and Civic Center positions.
Office of Human Resources Audit Report
As of 2/28/93
August 17, 1993
Page 27
DETAILED AUDIT FINDINGS
+-------------------------------------------------------------+
14. THE OFFICE OF HUMAN RESOURCES IS NOT IN COMPLIANCE
WITH ITS POLICIES AND PROCEDURES REGARDING THE
PROFESSIONAL DEVELOPMENT PROGRAM.
+-------------------------------------------------------------+
The Professional Development Program Policy and Procedures for Training and Education states: "The Office of Human Resources will maintain a record on every employee, will ensure all request(s) meet policy requirements, and will act as a clearing-house for educational and training opportunities."
Internal Audit found the Training Division of the Human Resource Department has no controls in place to verify that their records of "Professional Development" are accurate and complete. Internal Audit noted the following control weaknesses:
- The Policies and Procedures for Training and Education do not require the Director of the Human Resources Department or any other employee to review or authorize the Record of Training forms to ensure that all expenditures meet policy requirements.
- Time cards are not reviewed to verify that employees who attend education/training courses during working hours properly label their time with "ET" as required in the procedures.
- Per review of 107 voucher packages of all educational expenditures paid to individual county employees, the following reimbursements were found not to be in compliance with the policy requirements:
8.41% or 9 out of 107 did not have Record of Training forms attached.
10.28% or 11 out of 107 had incomplete Record of Training/Tuition Reimbursement forms.
30.84% or 33 out of 107 had tuition reimbursement forms with the pre-approval section completed after the employee began attending classes.
Office of Human Resources Audit Report
As of 2/28/93
August 17, 1993
Page 28
DETAILED AUDIT FINDINGS
+-------------------------------------------------------------+
14. THE OFFICE OF HUMAN RESOURCES IS NOT IN COMPLIANCE
WITH ITS POLICIES AND PROCEDURES REGARDING THE
PROFESSIONAL DEVELOPMENT PROGRAM.
(Continued)
+-------------------------------------------------------------+
17.76% or 19 out of 107 did not have the course description attached to the Record of Training or Tuition Reimbursement form.
Internal Audit recommends the Professional Development Program Policies and Procedures be revised to provide stronger controls to verify records are accurate and complete, and to ensure all requests for training and education are properly reviewed and authorized to meet policy requirements.
Office of Human Resources Audit Report
As of 2/28/93
August 17, 1993
Page 29
DETAILED AUDIT FINDINGS
+------------------------------------------------------------+
15. THE OFFICE OF HUMAN RESOURCES HAS NOT DEVELOPED A
SICK LEAVE POOL PROGRAM.
+------------------------------------------------------------+
The Office of Human Resources has not completed the development of a Sick Leave Pool. The Board of County Commissioners approved the concept to be developed in July 1992 with the anticipated completion in January 1993. To date, the policies and procedures have not been established for the proposed Sick Leave Pool.
Internal Audit recommends the Office of Human Resources develop a program to pool sick leave hours according to the Board of County Commissioners' directives on a timely basis.
Office of Human Resources Audit Report
As of 2/28/93
August 17, 1993
Page 30
+------------------------------------------------------------+
16. THE OFFICE OF HUMAN RESOURCES' BUDGET DOES NOT
ADEQUATELY REFLECT OPERATIONS. IN ADDITION, THE
OFFICE HAS NOT FULLY UTILIZED FUNDING PROVIDED FOR
A COUNTY-WIDE EDUCATION PROGRAM.
+------------------------------------------------------------+
Internal Audit noted the budgets from 1991 ($420,360) to 1993 ($478,068) increased approximately 14% without an apparent increase in staff or services provided. The Office of Human Resources' original 91/92 fiscal year budget was increased approximately 5% ($25,277) over the 90/91 fiscal year budget. Approximately $10,000 of the increase was to provide for development of a training program for all county employees and the balance was to provide for a f
