Audit of Human Resources Operations Report Number A-1617DJJ-004 June 28, The Office of the Inspector General Bureau of Internal Audit

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2 Report Number A-1617DJJ-004 June 28, 2017 By The Office of the Inspector General Robert A. Munson Inspector General Michael Yu, CIA, CIG Director of Auditing Kelly Neel Auditor-in-Charge Karen Miller Auditor Christina K. Daly, Secretary

3 Office of Inspector General Audit No. A-1617DJJ-004 TABLE OF CONTENTS EXECUTIVE SUMMARY 1 INTRODUCTION Background 2 Objectives, Scope, and Methodology 2 RESULTS OF AUDIT Details of Findings and Recommendations 3 APPENDIX: Management Response

4 Department of Juvenile Justice Office of the Inspector General Audit No. A 1617DJJ 004 EXECUTIVE SUMMARY The Department of Juvenile Justice (Department), Office of the Inspector General, has performed the. The audit objectives were to provide management with reasonable assurances that Human Resources Operations are in compliance with Florida Statutes, Florida Administrative Codes (F.A.C.), and the Department s policies and procedures; and evaluate whether internal controls over the operations of Human Resources are adequate and operating effectively. The audit scope was the operation of Human Resources from July 1, 2015 through June 30, 2016, and related activities through the end of fieldwork. The audit disclosed that human resources operations had policies and procedures in place that complied with Florida Statute, Florida Administrative Code, and Department policy and procedures; and internal controls, in general, were adequate and operating effectively. However, we noted the following areas for improvement: Employment advertisements did not include the statement, We hire only U.S. citizens and lawfully authorized alien workers. ; E-Verification was not always completed in a timely manner; Recruitment files could not be located for all selected new hires; and the DJJ Interview Rating Form was not included in every recruitment file; Employees had inappropriate access to People First; Procedures for Employee Separations were not always followed; and Workers Compensation procedures were not always followed. We recommend the Department ensure the Bureau of Human Resources staff follow operating procedures and update policies and procedures to remove information that is no longer relevant. Page 1 of 6

5 Department of Juvenile Justice Office of the Inspector General Audit No. A 1617DJJ 004 Audit # A-1617DJJ-004 INTRODUCTION The Office of the Inspector General,, conducted an Audit of Human Resources operations from July 1, 2015 through June 30, 2016, and related activities through the end of fieldwork. This audit was initiated based on our Fiscal Year Audit Plan and conducted in accordance with the International Standards for the Professional Practice of Internal Auditing, published by the Institute of Internal Auditors. Background The role of the Bureau of Human Resources (BOHR) is managing employment affairs for the Department. This includes employee attendance and leave, benefits, an employee assistance program, grievances, employment verification, public records request, unemployment compensation, payroll, recruitment, selection, retention, retirement, and workers compensation. They advise managers on how to manage their staff professionally. BOHR develops and updates employee handbooks and official policies and procedures to comply with changes in the law and regulations. They work in the best interest of both the employees and the Department. People First is the state s self-service web-based Human Resource Information System. The system streamlines and automates many of the state's human resource functions and includes attendance and leave, benefits administration, human resources management, organizational management, payroll preparation, performance management, recruiting, and reporting. While the Department of Management Services (DMS) serves as contract oversight for People First, the self-service functionality of the system is at the Department and employee level. Objectives, Scope, and Methodology The objectives of this audit were to provide management with reasonable assurances that human resources operations are in compliance with Florida Statutes, Florida Administrative Codes, and the Department s policies and procedures; and to evaluate whether internal controls over the operations of Human Resources are adequate and operating effectively. To achieve the audit objectives, we: reviewed applicable statutes and rules; reviewed Department policies and procedures; Page 2 of 6

6 Department of Juvenile Justice Office of the Inspector General Audit No. A 1617DJJ 004 interviewed BOHR staff for their knowledge and role in human resources operations; determined staff s proficiency in following procedures in these areas: o recruitment and selection o attendance and leave o grievances o payroll o performance management o retirement (reemployment) o workers compensation; and conducted other activities deemed necessary. We used judgmental sampling to improve the overall efficiency of the audit. Errors or irregularities could have occurred, but not detected, because of inherent limitations associated with judgmental sampling. As such, projection of the auditors conclusions based on our sampling method may be different from that reached if all human resource transactions and activities were subject to the audit procedures applied during the audit process. RESULTS OF AUDIT Details of Findings and Recommendations Finding 1: Employment advertisements did not include the statement, We hire only U.S. citizens and lawfully authorized alien workers. as required by Department policy and procedures. FDJJ-1003P Recruitment and Selection Procedures and Department of Management Services Supervisor s Recruitment and Selection Program Manual states that to comply with state and federal laws, all employment advertisements will include the following statement, among others, We hire only U.S. citizens and lawfully authorized alien workers. We selected 26 new employees from FY new hires for review. Eight of the new employees selected were determined to be Other Personnel Services (OPS) employees that were hired as direct appointments, for which there were no corresponding advertisements in People First. Of the 18 advertisements reviewed, none contained this verbiage. BOHR consulted with DMS and was advised that this verbiage is not required in statute or rule to be included on advertisements posted in People First. Additionally, employees are required to check a box during the employment application process indicating they are a U.S. Citizen or provide proof of authorization to work in the U.S., rendering the Page 3 of 6

7 Department of Juvenile Justice Office of the Inspector General Audit No. A 1617DJJ 004 phrase unnecessary. BOHR management indicated they will update FDJJ-1003P to delete this verbiage. Department policy and procedures should be periodically reviewed and updated to reflect changes in the law and regulations, and the current operations. We recommend the Department review and update the policies related to Human Resources. Finding 2: Employment Eligibility Verification forms were not always completed in a timely manner. FDJJ-1003P Recruitment and Selection Procedures states that BOHR completes E- Verification on all new hires. All new hires must complete an Employment Eligibility Verification (I-9) along with supporting documents. The I-9 is an essential tool in completing E-Verification. E-Verify must be completed within three (3) business days of the effective date of the applicant s employment. The review of employment eligibility verification for the 26 new employees in the test sample indicated E-Verify was not completed in a timely manner for two employees. For one employee, BOHR confirmed E-Verify was not submitted. In the second instance, documents showed that the employee was hired effective 10/30/2015, while the E-Verify for this employee was submitted on 11/06/2015, indicating 5 business days between the effective hire date and submission of E-Verify. On May 27, 2017, Florida Governor Rick Scott signed Executive Order No , which supersedes 11-02, requiring state agencies to use the E-Verify system to verify employment eligibility of state employees. Not completing the Employment Eligibility Verification in a timely manner may put the Department at risk of not being in compliance with the Governor s Executive Order and its own policies and procedures. We recommend the Department ensure BOHR staff comply with FDJJ-1003P and timely submit E-Verification. Finding 3: Recruitment files could not be located for all selected new hires; and the DJJ Interview Rating Form was not included in every recruitment file. FDJJ 1003P Recruitment and Selection Procedures states the hiring authority will submit the selection documentation to BOHR for maintaining for a period of four years. The completed DJJ Interview Rating Form which includes names and titles of all persons administering the selection process and justification for selected candidate is one of the required selection documents. Page 4 of 6

8 Department of Juvenile Justice Office of the Inspector General Audit No. A 1617DJJ 004 For the 26 new hires selected for review, BOHR was unable to locate the recruitment files for Position Number and Position Number Additionally, BOHR was unable to locate a completed interview rating form in the Recruitment file for Position Number Retention of Recruitment files, including documentation of the selection process is necessary to effectively dismiss grievances of discrimination and resolve litigation arising during the hiring process. We recommend the Department ensure BOHR staff comply with FDJJ-1003P. Finding 4: Employees had inappropriate access to People First. A security role code is used to define the type of access a user has in the People First system and is designed to limit access to data based on the employee s duties and responsibilities. The role code is assigned to an employee s position. Most employees will be assigned role code "E" for them to perform personal functions, such as, input of hours worked, W-4 information, home address, emergency contact, and to set up direct deposit. Supervisors and Managers have the role code "M" to enable them to recruit new employees, manage existing employee s performance, handle employee separations, and perform personnel functions on behalf of their direct reports. Security role code T is for Timekeeper, which allows the user to update and approve timesheets, flexible work schedules, leave requests, and view leave balance adjustments and leave balance overview for employees within the user s assigned organizational units. During our review of the DJJ Security Role Code Report, auditors noticed two employees were assigned the T security role code, although their position titles did not appear to warrant that role code. According to BOHR staff, one position has held the T security role code since 2004 and they are unsure why that role code was originally assigned to that position. The other position was issued the T security role code when the employee was appointed as the unit s acting supervisor. BOHR staff explained that both employee s security role codes were returned to security role code E. We recommend the Department implement an annual review of the DJJ Security Role Code Report to ensure assigned security role codes are accurate for each employee. Finding 5: Procedures for Employee Separations were not always followed. FDJJ Employee Separation Procedures indicates that BOHR shall on a monthly basis, mail an Employee Separation Questionnaire to each Career Service, Selected Exempt Service, and Senior Management Service employee who has separated from the Department during the preceding month. The former employee shall be asked to complete and return the Employee Separation Questionnaire to the BOHR in the self- Page 5 of 6

9 Department of Juvenile Justice Office of the Inspector General Audit No. A 1617DJJ 004 addressed stamped envelope provided and BOHR will maintain Employee Separation Questionnaires in an administrative file for two years. During the audit process, auditors reviewed files for 7 involuntary separations of headquarters staff. No employee separation questionnaires were found. BOHR explained they are no longer using this form. Existing Department policies and procedures should be followed. If change of a particular practice is deemed necessary, the policies and procedures should be changed to reflect the new practice. We recommend the Department update FDJJ to reflect current BOHR practices. Finding 6: Workers Compensation Procedures were not always followed. FDJJ P, Work-Related Injuries/Workers Compensation/Alternate Duty Procedures state that the First Report of Injury or Illness form must be signed and dated by the injured worker. If unavailable for signature, the form should be sent to the Bureau of Human Resources and the employee s signature acquired as soon as the injured worker is available. The injured worker, their supervisor or personnel liaison shall complete a Report of Accident/Incident form and forward a copy to the Bureau of Human Resources Workers Compensation Coordinator. The Procedures also state, the Bureau of Human Resources Workers Compensation Coordinator shall review the First Report of Injury or Illness form for completeness and provide a copy to the Senior Safety Specialist in the Office of Program Accountability. The Senior Safety Specialist shall distribute the First Report of Injury or Illness form to facility safety committees for review and corrective action if needed. During the audit process, auditors reviewed 20 workers compensation claims filed at headquarters in FY 15/16, and noted the following: Ten files did not contain a First Report of Injury or Illness form submitted by the injured worker, supervisor or personnel liaison; No file contained the required Report of Accident/Incident form; and Eight files did not contain documentation indicating it had been ed to the Senior Safety Specialist. Following the Workers Compensation Procedures is critical for processing workers compensation claims. We recommend the Department ensure BOHR staff follow the procedures relating to Workers Compensation claims. Page 6 of 6

10 APPENDIX MANAGEMENT RESPONSE

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