The report was approved by the Audit Committee at its June 23, 2004 meeting at which time it became public record.

Transcription

1 July 2, 2004 Lisa Miller Directr f Human Resurce Cmmissin 175 S. Main Street Akrn, OH Dear Ms. Miller: Attached is the final reprt f the Human Resurce Cmmissin preliminary audit that was discussed with members f senir management n March 5, In additin, please nte that the Cmmissin s management actin plan was incrprated int the final reprt. The reprt was apprved by the Audit Cmmittee at its June 23, 2004 meeting at which time it became public recrd. We appreciate the cperatin and assistance received during the curse f this audit. If yu have any questins abut the audit r this reprt, please feel free t cntact me at extensin (330) Sincerely, Bernard F. Zaucha Directr, Internal Audit cc: Audit Cmmittee

2 SUMMIT COUNTY HUMAN RESOURCE COMMISSION Preliminary Audit 04-hum.hrc-06 March, 2004 Apprved by Audit Cmmittee June 23, 2004 Summit Cunty Internal Audit Department 175 Suth Main Street Akrn, Ohi Bernard F. Zaucha, Directr 1

3 HUMAN RESOURCE COMMISSION Preliminary Audit TABLE OF CONTENTS I. Backgrund. 3 II. Objectives 4 III. Scpe 4 IV. Detailed Cmments

4 HUMAN RESOURCE COMMISSION Preliminary Audit BACKGROUND Auditrs: Lisa Skapura, Dan Crews, Jseph Gerge and Deanna Calvin Backgrund: On Tuesday Nvember 7, 1995, the electrs f Summit Cunty at the general electin vted t amend the Charter f the Cunty f Summit by enacting an article, which allwed fr the frmatin f a Human Resurce Cmmissin. The HRC rules were adpted by May 15, 1996 and tk effect July 1, The Human Resurce Cmmissin cnsists f three individuals. Tw f whm shall be members f the same plitical party, which shall be respnsible fr administering, fr and in cperatin with the fficers, agencies, bards and cmmissins f the Cunty, an efficient and ecnmical system fr the emplyment f persns in the public service f the Cunty accrding t merit and fitness. The members f the Human Resurce Cmmissin shall be appinted by the Cunty Executive and cnfirmed by Cunty Cuncil and shall be persns with experience in persnnel matters r persnnel administratin and supprtive f equal pprtunity cnsideratins. The term f ffice f each member f the Human Resurce Cmmissin shall be six years. The terms shall be staggered s that n term expires within less than tw years f the expiratin f any ther term. The Cunty Executive shall fill a vacancy ccurring during a term fr the unexpired term in the same manner as a regular appintment. 3

5 HUMAN RESOURCE COMMISSION Preliminary Audit OBJECTIVES Objectives: 1. T btain and review the current plicies and prcedures. 2. T review the internal cntrl structure thrugh emplyee interviews and bservatin. 3. T perfrm a general verview f existing cntracts in the department. 4. T perfrm a general verview f the physical envirnment and security f the facilities, data, recrds and departmental persnnel. Scpe: An verview and evaluatin f the existing plicies, prcesses, prcedures, cntracts and internal cntrl structure utilized by the cmmissin. Testing Prcedures: The fllwing were the majr audit steps perfrmed: OBJECTIVE 1 POLICY AND PROCEDURES REVIEW 1. Obtain and review the current plicies and prcedures. 2. Meet with the apprpriate persnnel t btain an understanding f the current department prcesses and prcedures. Cmpare thse existing prcesses t the plicies and prcedures manual fr cnsistency, nting all exceptins. 3. Test prcedures fr mandatry cmpliance where applicable. 4. Identify audit issues and make recmmendatins where apprpriate. OBJECTIVE 2 REVIEW OF INTERNAL CONTROLS 5. Meet with the apprpriate persnnel t btain an understanding f the cntrl envirnment. 6. Dcument the existing cntrl prcedures in narratives and/r flwcharts. 7. Cmpare existing prcesses t the plicies and prcedures manual fr cnsistency. 8. Test prcedures fr cmpliance where applicable, nting all exceptins. 9. Investigate discrepancies and summarize results. 10. Make recmmendatins where apprpriate. 4

6 OBJECTIVE 3 CONTRACT REVIEW 11. Obtain and review the current perating cntracts, i.e., vendr cntracts, unin cntracts, and service cntracts. 12. Determine that cntracts are current, prperly executed, and applicable. 13. Test the cntracts fr departmental perfrmance, where apprpriate, nting all exceptins. OBJECTIVE 4 REVIEW OF SECURITY 14. Perfrm a general verview f the physical envirnment and security f the department/ agency being audited. 15. Interview varius persnnel t determine that cnfidential infrmatin is secure and prcessed nly by apprpriate parties. 16. Obtain and review the dcument retentin plicy and determine if plicies and prcedures are currently in place and being fllwed. 17. Test security issues where apprpriate. 18. Analyze current plicies and make recmmendatins. 5

7 HUMAN RESOURCE COMMISSION Preliminary Audit DETAILED COMMENTS I. Plicies & Prcedures Review: The Human Resurce Cmmissin Rules manual was btained and reviewed by the Internal Audit Department. It was nted by IAD that the Human Resurce Cmmissin Rules manual was a cmprehensive guide t the prcesses used t create rules, file and dcket appeals, cnduct hearings, and appeal t the Curt f Cmmn Pleas when necessary. Hwever, the fllwing was nted: The Human Resurce Cmmissin Rules manual des nt cite administrative prcedures fr rutine prcesses including, but nt limited t: creating dcket numbers, ntifying interested parties f hearing dates (media r methd used), granting cntinuances, issuing subpenas, etc. Recmmendatin The Human Resurce Cmmissin shuld develp a plicies and prcedures manual specific t the daily and administrative peratins f the Cmmissin. Management Actin Plan Administrative Prcedure fr Emplyee Appeal Hearings cmpleted and attached. II. Internal Cntrl Testing: Internal cntrl testing and/r bservatins were perfrmed in the fllwing areas: Disclsure Statement Test Persnnel Files Cmmissiner s Salaries Attrney Fees Annual Reprt Jb Descriptins Hearings DISCLOSURE STATEMENT TEST: Sample testing was perfrmed t ensure that the Annual Ethics Disclsure statements had been filed in accrdance with Chapter f the Cdified Ordinances. N errrs were nted with the sample selected. 6

8 PERSONNEL: There is n frmal prcess fr the terminatin r the change f respnsibility fr emplyees. Per June Garey, Directr f M.I.S., her department currently runs a terminatin reprt mnthly. This reprt is used t remve the netwrk and applicatin access f terminated emplyees. This prcess leaves a large gap f time and the risk that a recently terminated emplyee culd have unauthrized netwrk/applicatin access. Lack f infrming ther departments such as insurance can als lead t a terminated emplyee incrrectly being insured. A frmal prcess fr terminatin wuld als ensure the cllectin f cunty prperty when an emplyee terminates emplyment. Recmmendatin IAD recmmends that a frmalized plicy and prcedure be created fr the terminatin, resignatin, r jb change f an emplyee. The plicy shuld include a frm fr ntificatin f the terminatin t departments such as insurance, M.I.S., payrll, the executive area handling I.D. badges, and any ther department that the emplyee is cnnected t. This plicy shuld als ensure that Cunty assets are inventried when the emplyee is hired s that these items can be cllected upn separatin frm emplyment. Management Actin Plan Emplyee Separatin/Exit Prcedure cmpleted and attached. This will be used until such time a Cuntywide Prcedure is established. It was nted that there was nly ne evaluatin fr Janis Crbin, Administrative Specialist and it was nt a standard Cunty evaluatin frm with a signature line fr the emplyee t indicate that they received the evaluatin. Janis has been with the cunty since Recmmendatins IAD recmmends that the Human Resurce Cmmissin utilize the standard Cunty evaluatin frms t perfrm perfrmance evaluatins t measure emplyee perfrmance. In additin, IAD recmmends emplyee evaluatins be cmpleted annually. Management Actin Plan Next evaluatin will be dne n the standardized frm. 7

9 There was n Persnnel Actin Frm fr the hiring f Lisa Miller, Directr f Human Resurce Cmmissin in the persnnel flder as required by Human Resurce Department. IAD btained a cpy f the cmpleted frm frm Janis Crbin, Administrative Specialist n 3/3/04. Recmmendatin IAD recmmends that this frm be included in this individuals persnnel file as required by the Human Resurce Department. Management Actin Plan Cpy f the Persnnel Actin frm has been inserted int Lisa Miller s persnnel file. There was n cpy f the drivers license r scial security card fr Janis Crbin, Administrative Specialist. This is a requirement f the Human Resurce Department. Recmmendatins IAD recmmends that a cpy f the driver s license r scial security card be placed in the file f Janis Crbin. Management Actin Plan Cpy f driver s license has been inserted int Janis Crbin s persnnel file. COMMISSIONER S SALARIES: Accrding t Summit Cunty Cuncil Reslutin , dated January 7, 2002, the cmpensatin f the Summit Cunty Human Resurce Cmmissin members is set at a stated annual salary, n benefits, t be paid in twenty-six equal payments. Payrll testing was perfrmed fr all three cmmissiners fr cnfrmance with the reslutin. N exceptins were nted. ATTORNEY FEES: A review f prcedures fr appinting and cmpensating utside Hearing Officers fr the Human Resurce Cmmissin was cmpleted with the fllwing nted: The Human Resurce Cmmissin has n specific prcedures in place fr recruiting utside Hearing Officers, validating their experience, r determining whm t select fr duty amng the available fficers when the need arises. 8

10 Recmmendatin Lisa Miller, Directr f the Human Resurce Cmmissin, infrmed the IAD that the HRC wuld n lnger be using utside Hearing Officers. In the event that the HRC cntinues t r resumes emplying utside Hearing Officers, IAD recmmends that the HRC develp and implement specific prcedures fr recruiting utside Hearing Officers, validating their experience, and maintaining dcumentatin f that experience in an HRC file. The HRC shuld als devise and implement a fair and equitable methd f rtating hearing assignments amng the utside Hearing Officers whse names are n the list that shuld be maintained by the department. The IAD is aware f tw hearings that are currently scheduled with hearing fficers in Management Actin Plan Lisa Miller will be the HRC Hearing Officer. Shuld this ever nt be the case, resumes will be received and frwarded t the HR Cmmissiners fr their review. Rtatin wuld largely depend n their availability. ANNUAL REPORT: The Human Resurce Cmmissin Rules Sectin 4.05 requires that an annual reprt be prepared fr the HRC. IAD reviewed the annual reprt fr 2002 due t the fact that the 2003 reprt is generally cmpleted at the end f the fllwing year s 1 st quarter. N exceptins were nted. JOB DESCRIPTIONS: There were n psitin descriptins nted fr the tw Human Resurce Cmmissin psitins. Recmmendatin IAD recmmends that psitin descriptins be created fr these tw psitins. Management Actin Plan Psitin Descriptin has been cmpleted fr Janis Crbin and is attached. Psitin Descriptin fr Lisa Miller is same as her classificatin specificatin. 9

11 HEARINGS: Testing was perfrmed t ensure that hearings are in cmpliance with the Human Resurce Cmmissin Rules. An bservatin f an HRC hearing was perfrmed t cnfirm that the hearings are being cnducted in accrdance with the Human Resurce Cmmissin Rules. N exceptins were nted. III. Cntract Review: The Human Resurce Cmmissin currently has tw cntracts, bth f which are with the same vendr. Therefre, bth cntracts were selected fr review. The cntracts were fr Prfessinal Services Agreements between the Cunty f Summit and Buckingham, Dlittle & Burrughs, LLP. The cntracts were reviewed t determine if they were current, prperly executed, and applicable t the services perfrmed. N exceptins were nted. IV. Security: Security issues nted during fieldwrk are addressed under separate cver in the accmpanying reprt in cmpliance with Ohi Revised Cde