Riverside County Grand Jury • 2003-2004

Riverside County Human Resources Department Temporary Assistance Pool (tap)

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Findings and Recommendations 9 findings

F1
The FY 2003-2004 budget for TAP was set at twenty five million dollars ($25,000,000), 37 funded employees and 1035 inventory part-time personnel, reflecting an increase of five hundred percent (500%) over that of FY 1998-1999. Based on the Business Plan (Form 11) submitted to the Board of Supervisors the budget increase over 5 years would be twenty percent (20%) for a budget of $6,428,400.
Related Recommendations (1)
R1
Human Resources reduce the size and budget of TAP to its FY 1998-1999 size including the increased projected by the March 1998 Business Plan, resulting in a budget of $6,428,400. The Form 11 and supporting documents submitted to the Board of Supervisors for the establishment of the TAP Program stated that a twenty percent (20%) increase was projected for the five year period following FY 1998-1999. This translates into a budget of six million, four hundred twenty eight thousand dollar ($6,428,020) for FY 2003-2004. If one used the Cost of Living Index for the Los Angeles, Long Beach, and Riverside area of sixteen percent (16%) for the same period, the figure would be about two hundred thousand dollars ($200,000) less.
F2
Since its inception in 1998, the TAP function has not been audited.
Related Recommendations (1)
R2
The County Auditor-Controller conduct a full audit of the TAP function within the Department of Human Resources. 4
F3
County employment has grown from approximately 12,000 employees in 1998 to over 19,000 in 2003. During this period, 2,659 temporary employees were transferred to permanent status. In addition, 12,374 employees were hired through the Resumix System. The Resumix System is a computer based program matching resumes to job descriptions. A total of 8,000 employees transitioned out of the County, resulting in an employee turnover rate of forty-two percent (42%).
Related Recommendations (1)
R3
Since the Auditor-Controller performs fiscal audits only, it is recommended an independent managerial auditing firm be hired to conduct a study to report on the following: a) The County employee turnover rate. b) High incidence of temporary employee unemployment insurance claims. c) Whether the use of temporary employees was required by an operational necessity or unanticipated event.
F4
Each time a person terminates and a new hire is brought in to fill the position, the County incurs additional cost. Based upon information provided by the Riverside County Assistant Director of Human Resources, and by Advantage Hiring, Inc., during the period 1998 through 2003 this cost was fourteen hundred forty dollars ($1,440) per employee for a total of eleven million five hundred twenty thousand dollars ($11,520,000). Note: “True turnover costs are more complex than simply figuring out the average cost of replacement. The costs of losing a good performer are greater than the costs of losing an average performer. The true cost of losing a key seasoned player is hard to estimate. There is the investment in development of the employee, the value of the knowledge and experience gained, 2 and the lost productivity that also have to be considered to arrive at a true cost figure.” Advantage Hiring Inc.
Related Recommendations (1)
R4
Human Resources establish a database so all departments can access current and former employees records for tracking all TAP employees’ records and those who have transitioned to permanent status as County employees. The capability already exists within County Information Technology.
F5
The County Department of Human Resources has projected that unemployment compensation claims from temporary hires in FY 2003-2004 will approach six million, six hundred thousand dollars ($6,600,000) or approximately ten thousand dollars ($10,000) per claimant. This accounts for more than one-third of such claims filed by all County employees.
Related Recommendations (1)
R5
Human Resources establish specific policies defining the circumstances under which a manager may request the hiring of temporary staff and impose limitations on the number of temporary hires authorized at any given time within each department.
F6
Sixty eight percent (68%) of permanent County employees currently staffing the TAP function within the Human Resources Department began County employment as temporary hires. This situation creates a duplication of efforts and additional costs to the County.
Related Recommendations (1)
R6
Departments shall not exceed their temporary hire quotas unless the Chief Executive Officer personally authorizes such a hiring increase based upon the existence of a temporary emergency or other non-recurrent necessity.
F7
On January 24, 2004, the Board of Supervisors ordered all departments to cut spending across the board by eight percent (8%). In spite of the directive, on Sunday, February 22, 2004, a local newspaper carried a County TAP advertisement for new temporary hires in more than thirty (30) positions.
Related Recommendations (1)
R7
Human Resources require that all departments comply with the hiring freeze ordered by the Board of Supervisors.
F8
Through interviews and documents, it was established that employment decisions were not completely based on merit in the hiring of temporary personnel through TAP. It was found that, in some cases, relatives of supervisory, managerial, or administrative permanent employees were afforded employment consideration not available to other applicants; for example: a) A temporary employee file was found in the archive with a “post-it” note attached stating that the file contained the application of a permanent TAP employee’s daughter. This applicant was immediately hired. b) The spouse of a supervising permanent County employee submitted an application for temporary employment for work that the applicant was not qualified to perform. It was made clear to the employee reviewing the application, that this person would be hired even if the document had to be altered. 3 c) During the course of this inquiry, the Grand Jury physically inspected the employment files of temporary employees in pre-selected alphabetical categories corresponding to the surnames of certain persons known to have been hired by TAP. The alphabetically maintained employment records of some persons known to be related to permanent County employees serving in supervisory capacities could not be located. The records were produced by TAP employees only after specific name requests were made.
Related Recommendations (1)
R8
All TAP applications be amended to require the applicant to disclose the name and permanent duty assignment of any of his or her relatives employed by the County.
F9
Several employees interviewed stated fears of management retaliation were they to speak candidly with the Grand Jury.
Related Recommendations (1)
R9
TAP permanent employees shall not review, make any recommendation, or take any action, with respect to an employment application submitted by a family member. ATTACHMENT “D” ORDINANCE AND RESOLUTION AMENDMENTS TRANSFER OF FUNDS It is requested the Board approve the following: 1) By Ordinance, amend the Table and Index of Ordinance #440 to add the following classification: CLASS CODE CLASS TITLE SALARY RANGE 13871 Temporary Assistant 0 ($5.75 - $125.00 per hour) 2) By Resolution, amend Ordinance 440, Section 49 (a) Personnel to add the following positions: NUMBER CLASS CODE CLASS TITLE SALARY RANGE +1 74774 Senior Personnel Analyst 350 ($41,787 - $51,750) +1 15915 Accounting Technician I 273 ($27,664 - $34,278) +2 13868 Supervising Office Assistant II 241 ($23,317 - $28,870) 3) By Resolution, amend Ordinance 440, Section 49 (a) Personnel – TEMPORARY to add the following positions: NUMBER CLASS CODE CLASS TITLE SALARY RANGE +200 13817 Temporary Assistant 0 ($5.75 - $125.00 per hour) To be effective on the date of approval. 4) An advancement/transfer of funds of $600,000 to the Personnel Department, Temporary Assistance Program, Fund 706, Organization 951, to fund the initial period of the Temporary Assistance Pool including staff salaries, initial physicals/drug and alcohol testing, hardware and software requirements for testing, tracking and billing, etc. It is anticipated these monies and staff will be transferred to an approved Internal Services Fund, and that the $600,000 will be paid back by June 30, 2000. 5) The budget for the Temporary Assistance Program be set up and the Board approve the recommended appropriations and estimated revenue as attached. 6 1997-1998 APPROPRIATIONS 1-10101 Regular Salaries (+10% increase) $120,000 (1) Senior Personnel Analyst, (1) Accounting Technician, and (2) Supervising OA II positions. 1-11101 Temporary Salaries 1,026,000 Temporary Assistance Pool employees’ salaries 1-20101 Budgeted Benefits/mandated costs 30,500 2-30003 Accounting Services 10,000 RIFMIS for billings/payments to/from departments. 2-35303 Insurance Liability 5,000 Insurance Charge based on employees & mileage driven 2-42101 Office Expense 40,000 Computer hardware and software, printing services, advertisements, etc. 2-42109 Temporary Services 4,000 Paid to external services (and guarantee to cover first 8 hours of TAP employees) 2-43809 Drug Testing 10,000 Physical and drug & alcohol testing per policy 2-50202 Car Pool Mileage 2,000 Staff, when monitoring employees at departments and reviewing departments’ needs, and TAP employees, (mileage billed to/reimbursed by departments) 2-50203 Private Mileage 2,000 Mileage when using personal car is more advantageous 2-50206 Registration/Conference Fees 500 Registration for human resources conferences 2-50208 Meals 0 Meals when out of the area visiting departments or resolving problems TOTAL $ 1,250,000 7 REVENUE 7246 Charges for Current Services/Personnel Services Reimbursement from user departments: $1,250,000 8 ANNUAL OPERATING BUDGET JUSTIFICATION 1-10101 Regular Salaries $ 195,525 (1) Senior Personnel Analyst, (1) Accounting Technician, and (2) Supervising OA II positions. 1-11101 Temporary Salaries 4,000,000 Temporary Assistance Pool employee’s salaries 1-20101 Budgeted Benefits/mandated costs 211,756 TAP = $116,000/Staff = $51,756 + offset of certain employees who work over 1,000 hours 2-30003 Accounting Services 60,000 RIFMIS for billings/payments to/from departments. 2-35303 Insurance Liability 15,000 Insurance Charge based on employees & mileage driven 2-42101 Office Expense 140,000 Computer hardware and software, printing services, advertisement, etc. 2-42109 Temporary Services 459,000 Paid to external services (and guarantee to cover first 8 hours of TAP employees) 2-43809 Drug Testing 35,200 Physical and drug & alcohol testing per policy 2-50202 Car Pool Mileage 2,000 Staff, when monitoring employees at departments and reviewing departments’ needs and TAP employees, (mileage billed to/reimbursed by departments) 2-50203 Private Mileage 2,000 Mileage when using personal car is more advantageous 2-50206 Registration/Conference Fees 500 Registration for human resources conferences 2-50208 Meals Meals when out of the area visiting departments 19 or resolving problems 3-64102 Interest on loan 36,000 REPAY LOAN (1/3 of $600,000) 200,000 (After payback of loan, this amount will be placed in reserve for future computer software purchases, including computer software/hardware for training and testing.) TOTAL $ 5,357,000 9 REVENUE Reimbursement from user departments: Salaries of TAP employees $4,000,000 22.9% markup 916,000 Temporary Services 400,000 $1.00 per hour administrative fee 40,000 Mileage reimbursement for TAP employees 1,000 TOTAL $5,357,000 10

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Riverside County Auditor-Controller Elected County Office
Riverside County Board of Supervisors Elected County Office