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Memorandum Internal Audit Services

TO: The Honorable Members of the School Board of the City of Richmond, Virginia

Dr. Yvonne Brandon Superintendent FROM: Debora R. Johns, CGAP Chief Auditor DATE: June 22, 2009 SUBJECT: Audit Report on the Review of the Human Resources Department Audit Assignment No.: A-3104-09-002 As a part of our approved Fiscal Year 2009 audit plan, Internal Audit Services completed the audit work on the Human Resources Department (HRD). Our work was performed in accordance with the International Standards for the Professional Practice of Internal Auditing. The audit covered the period of July 1, 2007 through May 31, 2009. The purpose of our audit was, but is not limited to, the following objectives: to ensure that proper internal controls exist; to ensure the accuracy of data, to review expenditures, and to review compliance with policies, procedures and regulations. We commend HRD’s recruitment efforts and customer service. Although our audit procedures indicate the items mentioned above were properly handled, there are areas that need improvement such as stronger leadership, updating procedures, monitoring employee evaluations, updating job descriptions and improving the employee record database system. Although we exercised due professional care in the performance of this audit, this should not be construed to mean that unreported noncompliance or irregularities do not exist. The deterrence of fraud is the responsibility of management. Audit procedures alone, even when carried out with professional care, do not guarantee that fraud will be detected. The purpose of the audit report is to furnish management independent objective analyses, recommendations, counsel, and information concerning the activities reviewed. The audit report is a tool to help management identify weaknesses and implement specific improvements. We would like to acknowledge the cooperation extended to us during the performance of this audit by employees of the Human Resources Department. If you have any questions concerning this report, please contact me. My telephone number and email address are shown below.

301 North Ninth Street Richmond, VA 23219-1927 Telephone: (804) 780-7628 Fax: (804) 780-7099 E-mail: [email protected]

Table of Contents

. Pages Audit Report in Brief 2 - 7 Background 8 -10 Objectives & Scope and Methodology 11 - 12 Audit Findings and Conclusions

Strong Leadership Needed 13 - 14

Update the RPS Administration Procedures Manual 14 - 15

Update the Human Resources Operating Procedures Manual 16

Determine Whether Benefits are Due to Employees’ Estates 17

Monitor & Ensure all Annual Employees Evaluations are Performed 17 - 18

Develop Procedures for Position Control & Include All FTEs in the System 19 - 20

Update Job Descriptions 20 - 21

Follow Purchasing Guidelines 22 - 23

Analyze the Functionality of the Database System Used to Archive Records 23 - 24

Improve the Process for Scanning Records 24 - 25

Implement an Employee Termination Checklist 26 - 28

Improve the Tracking of Grievances and Discipline Cases 28 - 29

Reorganize Duties of the Senior HR Associate in the Substitute Office 29 - 30

Other Matters to Consider 31 Acknowledgements 32

1

AUDIT REPORT IN BRIEF

Audit Review of Human Resources Department (HRD) Scope __ Financial-Related Computer/EDP X Operational/Program Results Special Project Team Members Jacquelyn Stubbs, Auditor and Debora Johns, Chief Auditor Objectives

1. To ensure that proper internal controls, policies and procedures are in place and in

compliance with applicable policies, laws and regulations.

2. To determine whether the Human Resources Department (HRD) is viewed as a strategic

business partner, and is helpful, accessible, and provide accurate data.

3. To determine if appropriate training is provided to ensure HRD employees have the

necessary skills.

4. To conduct a HRD budget review to determine whether Human Resources expenses are

reasonable, properly recorded and that adequate controls exist.

5. To determine whether RPS is in compliance with employment regulations and that

employees’ complaints and grievances are handled appropriately.

Audit Findings:

A strong leader with knowledge of human resources practices and procedures is needed

for the department.

The Richmond Public Schools (RPS) Administrative Procedures Manual is outdated.

HRD operating procedures manual is outdated.

HRD is not following current School Board policy regarding the payment of employees’

estate benefits.

2

3


(Continued)

Audit Findings

Some employees evaluations are either not being done by supervisors or are not being

submitted to HRD.

All positions are not entered into the Position Control System and written procedures do

not exist.

RPS’s job descriptions need to be updated.

HRD did not follow purchasing guidelines.

HRD uses two database systems, to archive employees’ records, however, the system are

not fully functional.

The scanning of employees’ records is backlogged, and some of the scanned files are

incomplete.

An employee termination checklist by department does not exist.

A database tracking system for grievances and disciplinary cases does not exist.

The duties of the Senior Human Resources Associate responsible for the Substitute

Office need to be reviewed.

This space left intentionally blank.


(Continued)

Audit Recommendations:

Based on our findings, we made the following recommendations:

1. The Superintendent must ensure that the new Director of Human Resources

possesses the following basic managerial skills such as: planning, organizing and

staffing, directing and coordinating, evaluating and controlling the HRD function.

These are the key skills that a Director needs to properly manage the department.

2. The new Director of Human Resources must update the Richmond Public Schools’

Administrative Procedures Manual to reflect the changes in the School Board

policies and administrative procedures. If the Director identifies policies that need to

be removed because of changes in laws and operating practices, this information

must be communicated to the School Board for necessary policy changes.

3. An updated manual must be placed on the RPS web page. It is important to notify all

departments and schools when the manual is updated.

4. The new Director of Human Resources must analyze job functions to determine

more efficient processes and update the operating procedures manual. A copy of the

updated manual must be provided to all staff members.

5. The new Director of Human Resources must revisit the current policy regarding the

payment of benefits to employees’ estates and research the viability of the policy.

6. The new Director of Human Resources must ensure that all departments and school

administrators are performing at least annual evaluations of their staff.


4


(Continued)

Audit Recommendations

7. The new Director of Human Resources must include in the process a follow-up to

the employees’ evaluations. A copy of the second request for employees’ evaluations

must be sent to the Assistant Superintendent for Administration and Support

Services. The directors/principals/managers’ failure to adhere to annual evaluation

procedures must be reflected in the directors/principles/managers’ performance

evaluation.

8. HRD, Department of Finance, and Budget and Financial Reporting must jointly

develop position control procedures to assist in implementing an efficient and

effective position control system.

9. The Budget and Staffing Report must be used to assist in reconciling positions to the

budget. The responsibility for updating the Employees Management System (EMS)

and Position Control (PC) data tables must be assigned to an individual.

10. The position control number 6000 must not be used for any special revenue fund

positions. A unique position control number must be assigned to each position.

11. The budget holders (schools and departments) must be informed when positions are

deleted from their operating budget.

12. Budget and Financial Reporting must certify the availability of funds for all

positions and administrators to ensure that the data is accurate, timely, and complete

by performing monthly reviews.

13. The new Director of Human Resources must ensure that all positions have job

descriptions and that job descriptions are current and in compliance with Federal

regulations such as the Americans Disabilities Act (ADA).

5


(Continued)


14. The new Director of Human Resources should consider outsourcing the task of updating

the job descriptions and appoint a staff member to keep job descriptions current.

15. The new Director of Human Resources must analyze the departmental expenditures and

inform the Division of Purchasing of goods or services that are needed on a repetitive basis

so that contracts are negotiated in accordance with RPS policies and procedures.

16. The new Director of Human Resources must analyze whether WinOcular meets the needs

of the Human Resources Department. If so, an installation team consisting of HRD,

Information Communication Technology Services (ICTS) and the Records Department

must be established to fully install WinOcular.

17. All future software selections must be reviewed by ICTS prior to purchase.

18. The new Director of Human Resources should purchase scanners and assign staff within

the HRD to scan documents.

19. The HRD staff and Records Management staff should review and follow the written

procedures for scanning documents.

20. The Senior Data Technician must store records in fire proof file cabinets.

21. The new Director of Human Resources should consider temporarily using an outside

vendor to scan documents and eliminate the backlog.

22. The new Director of Human Resources should design and implement an employee

termination checklist for all administrators to use when an employee resigns or terminates

employment with RPS. When designing the checklist, the Director should consult with

other departments to ensure a comprehensive checklist is developed. The checklist must be

completed for each exiting employee and returned to the HRD to be included in the

employee’s file within two weeks of employee separation.

6

7


(Continued)


23. The new Director of Human Resources must implement a comprehensive tracking system,

such as a database or spreadsheet to record the progress of each grievance. The database

should include, but not be limited to, the employee’s name, location, issues, steps taken,

date of the steps and the final results. The database should be updated weekly.

24. The new Director of Human Resources should review the duties of the Senior Human

Resources Associate in the Substitute Office and reassign the recruitment of substitutes to

a HR coordinator.

25. The new Director of Human Resources should determine if other of the duties could be

reassigned to another HRD employee.

Management Response

The interim Director of Human Resources generally concurs with the audit findings and

recommendations.


Review of the Human Resources Department

8

Background

The Richmond Public Schools’ Human Resources Department (HRD) employees provide a wide

range of services to the school district. Its mission as stated on their web page is:

“To provide effective personnel administration program for the school division. The primary

function is to assist in the delivery of an effective and efficient educational program for all

children. To that end, the staff of the Department of Human Resources is dedicated to the

employment of quality personnel. The staff is committed to providing a strong support system

for all employees that is predicated upon school board policies and Personnel rules and

regulations.”

HRD’s primary responsibilities are:

Recruitment

Hiring and training a highly qualified staff

Job classification

Salary administration

Retirement program

Disciplinary actions

Teacher licensure

The risk management and benefits are handled by Department of Benefits and Risk Management.

In addition, training and development is handled by Department of Professional Development;

however the budget line for RPS staff development is included in HRD’s budget.

The Human Resources Department consists of 17 full-time employees, one Cooperative Office

Education (COE) student and one temporary employee. Currently, the director’s position is vacant.

The staff of the Human Resources Department is shown below in the organizational chart.


The adopted Fiscal Year 2008 budget for HRD was $2.8 million and $2.9 million for Fiscal Year

2009.

This space was left intentionally blank.

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The process used by RPS for filling full time vacant positions (Instructional, Administrative and

Classified) are as follows:

Supervisor, Principal or Coordinator, identify a vacant position

Contact HR by memo or email for approval about filling a vacancy in a school or department

HR Director or Coordinator notifies Principal or Supervisor that the request has been denied

The Coordinators review the endorsed authorization form or memo and forward to Coordinator Compensation Employee Relations

The Coordinator advertises the vacancy.

The HR Assistant processes the applications from the WinOcular system.

The Director of HR/Coordinator reviews and approves or rejects the authorization for filling the vacancy?

End of Process

Coordinator ranks individuals that were labeled qualified and minimally qualified and determine who will be interviewed.

Instruct HR Assistant to send a letter or email to unqualified individuals and schedule interviews from the list of qualified applicants and set up an interview panel subject to approval.

The Coordinator and interview panel interviews and selected applicants; scores each and ranks their top three choices; and forward information to the Director or appropriate Coordinator

HR Assistant notifies all applicants not hired in writing or by email, application maintained in HR electronic file

The Coordinator schedules a time for the candidate to complete the necessary paperwork.

The HR Director or Coordinator offers the position by phone to the selected candidate.

The Coordinator screen and place applicants into three categories, qualified, minimally qualified and not qualified.

HR Associate forwards processed applications to the appropriate Coordinator

No Yes

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Objectives

The audit focuses on operational issues of the Human Resource Department. The objectives of this

audit were:

1. To ensure that proper internal controls, policies and procedures are in place and in compliance

with applicable policies, laws and regulations.

2. To determine whether the Human Resources Department (HRD) is viewed as a strategic

business partner, and is helpful, accessible, and provide accurate data.

3. To determine if appropriate training is provided to ensure HRD employees have the necessary

skills.

4. To conduct a Human Resources budget review to determine whether Human Resources

expenses are reasonable, properly recorded and that adequate controls exist.

5. To determine whether RPS is in compliance with employment regulations and that employees’

complaints and grievances are handled appropriately.

Scope and Methodology

The audit period was July 1, 2007 through May 31, 2009. Our audit excluded a review of

administrative, clerical and support staffing patterns. A staffing study was performed by MGT of

America, Inc., report entitled “Richmond Public Schools Staffing Study”, and dated February 10, 2009

was released.

The HRD director retired effective January 31, 2009. However, prior to his retirement we interviewed

him on several occasions. Therefore, we did not have scope limitations for the audit.

We conducted our review in accordance with the International Standards for the Professional Practice

of Internal Auditing. These standards require that we plan and perform the audit to afford a reasonable

basis for our judgments and conclusions regarding the organization, program, activity, or functions

under audit. An audit includes assessments of applicable internal controls and compliance with

requirements of laws and regulations when necessary to satisfy the audit objectives. We believe that

our audit provides a reasonable basis for our conclusions.


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Our work may be summarized as follows:

Interviewed key personnel in HRD and the Office of Records Management.

Reviewed School Board Policies.

Reviewed HRD Administrative Procedures Manual.

Evaluated the internal controls established by management.

Observed work processes.

Surveyed principals and assistant principals regarding HRD services.

Surveyed other school districts regarding their HRD operations.

Reviewed personnel files for completeness.

Ran queries to obtain financial data associated with Human Resources.

Reviewed and analyzed supporting documentation for financial transactions

Ran queries to obtain information about teachers programs, staffing and employment status

Performed other auditing procedures that we considered necessary in the circumstances.



13

Audit Findings and Conclusions

Strong Leadership Needed

The Director of Human Resources most important duties were to work with and through his staff to

plan, organize, direct and control the various functions of the department. However, we found

during the review that the former Director did not effectively communicate to his staff or manage

the department. Our concerns with management of the department are as follows:

Being knowledgeable – The former Director was unable to answer some of the vital questions

about HRD policies and procedures.

Planning – A detail strategic plan for the department was not available.

Organizing – The staff stated that they need additional training and cross training. In addition,

proper instruction to the staff was not adequate. This is necessary for the staff to accomplish

their goals.

Controlling the processes – Director must evaluate the staff’s performance and adjust jobs or

processes that may need improvement.

The former Director of HRD outlined five goals for the department. The HRD goals for Fiscal

Year 2008 to 2010 were as follows:

1. To recruit, hire and retain highly qualified staff

2. To serve our customers in a humanistic, professional and efficient manner

3. To take ownership of projects, assignments and reports

4. To increase knowledge and skills in the human resources field

5. To cultivate a team environment in human resources

However, strategies were developed for only the recruitment goal.



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Recommendation

1. The Superintendent must ensure that the new Director of Human Resources possesses

the following basic managerial skills such as: planning, organizing and staffing,

directing and coordinating, evaluating and controlling the HRD function. These are the

key skills that a Director needs to properly manage the department.

Management Response:

Concur. The target date will be determined when a new Director of HRD is hired.

Update the RPS Administrative Procedures Manual

The Richmond Public Schools’ Administrative Procedures Manual is dated June 1997. The manual

is outdated and does not include procedures for the following School Board policies added after

June 1997. See chart below:

Policy

Number Policy Name Date

Adopted

Revised 7.57 Fraudulent and Wrongful Acts June 21, 1990

7.58 Fraud, Waste and Abuse Hotline June 21, 1999

7.59 Use of Computer Technology October 18, 1999

7.60 Planning Time for Elementary School Teachers

June 19, 2000

7.61 Incentives for Excellence in Teaching November 6, 2000

7.62 Internet Website Privacy December 4, 2000

7.63 Dress Code May 2, 2005

7.64 Cell Phone Policy June 13, 2005 June 16, 2008

7.65 Convictions for Certain Crimes and Child Abuse and Neglect Criminal Convictions

June 16, 2008

In addition, the Administrative Procedures Manual must be compared to the School Board policies to

determine the procedures that must be removed due to changes in laws and operating practices, and

procedures that must be updated due to policy revisions. For example, policy 7.18C concerning the

retirement plan (403B matching plan) has been added to the policy and not to the Administrative

Procedures Manual. In the past, the responsibility for updating the HRD procedures manual was


15

assigned to the Coordinator for Compensation, Policy, Research and Leadership Development. This

FTE position was eliminated and the responsibility has not been reassigned.

The Director is responsible for ensuring that RPS Administrative Procedures Manual is kept up to

date and reflect all current policies and procedures. The outdated procedure manual is on HRD’s

web page. Outdated procedures will promote errors by employees and may increase the number of

grievances. The Director was aware that the manual was outdated. However, a staff member stated

that resources are not available to update the manual.

Recommendations

2. The new Director of Human Resources must update the Richmond Public Schools’

Administrative Procedures Manual to reflect the changes in the School Board policies

and administrative procedures. If the Director identifies policies that need to be

removed because of changes in laws and operating practices, this information must be

communicated to the School Board for necessary policy changes.

3. An updated manual must be placed on the RPS web page. It is important to notify all

departments and schools when the manual is updated.

Management Response




16

Update the Operating Human Resource Procedural Manual

A current operating procedures manual to guide supervisors and staff in the performance of their

duties does not exist. A Coordinator had a copy of an outdated operating procedures manual with a

revised date of March 9, 1992. The manual covers the functional responsibilities and duties of the

staff. It describes each procedure in detail. The manual was developed to assist the supervisors and

staff of the Human Resources Department as a working guide in the day-to-day responsibilities of

the organization’s processes and to ensure uniformity throughout the department. However, the

manual needs to be updated. By not using updated policies and procedures, important steps in

employees’ job duties could be inadvertently eliminated and forgotten as we found during the

review. The prior Director did not analyze the needs of the department, therefore, an updated

operating procedures manual was not identified as a project.

Recommendation

4. The new Director of Human Resources must analyze job functions to determine more

efficient processes and update the operating procedures manual. A copy of the updated

manual must be provided to all staff members.

Management Response




17

Determine Whether Benefits are Due to Employees’ Estates

We found that the Department of Human Resources was not processing the death benefits payment

as stated in School Board policy 7.31 (Death Benefits). The policy was first adopted on April 20,

1978 and revised on November 21, 1984 and December 17, 1990. School Board policy 7.31 states,

“If a permanent full-time employee with one or more years of creditable services dies while under

contract in service any time before retirement from a cause not compensable under the Virginia

Worker’s Compensation Act, a benefit of $2,000.00 will be paid to the estate of the employee

within ninety (90) days after the time of death. The benefit will be in addition to any life insurance

or social security benefit to which the employee’s estate may be entitled.” If this policy is effective,

former employees’ estates did not receive the money due to them. The financial impact to the

school district is unknown because records are not readily available. The prior and current

Coordinator of Administrative Services stated that they were unaware of the policy. A Human

Resources Senior Associate stated that death benefits were processed a long time ago but was no

longer part of the process.

Recommendation

5 The new Director of Human Resources must revisit the current policy regarding the

payment of benefits to employees’ estates and research the viability of the policy.

Management Response


Monitor & Ensure all Annual Employees Evaluations are Performed

The Director of Human Resources is responsible for monitoring and maintaining employees’

annual evaluations. The Director issues a memo in June of each year requesting the managers to

submit the employees’ annual evaluations. We found that some departments and schools were

either not performing evaluations or not submitting them to the Department of Human Resources

on an annual basis. School Board policy 7.25 states that “The superintendent shall establish and

maintain suitable procedures for adequate and periodic appraisal of the work of each employee and


18

shall maintain written records of the results of such appraisals.” It is the responsibility of the

Director to ensure that all directors/principals/managers perform annual evaluations of all

employees by the end of the school year. Personnel evaluation is a cooperative and continuing

process undertaken to improve the quality of instructions and employee performance within the

school division. When evaluations are not performed, the employees and their supervisors are not

given the opportunity to determine if they are satisfactorily meeting the responsibilities of their

position, or to decide on changes which would be necessary to improve performance. The Director

did not ensure that all directors/principals/managers perform annual evaluations of their staff as

required by the school board. There was no follow-up to the request; no notification to the

directors/principals/managers regarding their failure to perform the evaluations.

Recommendations

6 The new Director of Human Resources must ensure that all departments and school

administrators are performing at least annual evaluations of their staff.

7 The new Director of Human Resources must include in the process a follow-up to the

employees’ evaluations. A copy of the second request for employees’ evaluations must be

sent to the Assistant Superintendent for Administration and Support Services. The

directors/principals/managers’ failure to adhere to annual evaluation procedures must be

reflected in the directors/principles/managers’ performance evaluation.

Management Response




19

Develop Procedures for Position Control & Include All FTEs in the System

Position control has been an issue for the school district for several years. However, RPS continues

to operate its position control process based on head counts. During our audit we received three

different reports for the total FTE’s and each report had different totals. The Position Control

system can track all full-time and part-time FTEs. Currently, there is an effort to reconcile general

fund FTEs. However, the data on special revenue fund FTEs is outdated. Position Control number

6000 is being used for all special revenue fund FTEs. HRD, Budget and Financial Reporting, and

Department of Finance must work together to ensure the success of position control.

A Budget and Staffing Report was previously developed as a tool to reconcile the position control

system, Employee Management System (EMS) with the budget. However, this report is not being

used.

We determined that the Budget and Staffing Report was not functioning because data tables had

not been updated. Position Control is a system that can ensure that no one would be hired unless

there is an open position. The Position Control system can cut down paperwork and manual

processes, and ensure all departments have access to the same information at the same time. It will

also produce an on-line comparison between budgeted and actual positions. Most importantly, it

will provide the School Board with reliable, accurate, complete and timely information on

employee count. In order for the RPS to stay within its budget, administration must be aware of all

positions.

Recommendations

8 HRD, Department of Finance, and Budget and Financial Reporting must jointly develop

position control procedures to assist in implementing an efficient and effective position

control system.

9 The Budget and Staffing Report must be used to assist in reconciling positions to the

budget. The responsibility for updating the Employees Management System (EMS) and

Position Control (PC) data tables must be assigned to an individual.


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10 The position control number 6000 must not be used for any special revenue fund positions.

A unique position control number must be assigned to each position.

11 The budget holders (schools and departments) must be informed when positions are deleted

from their operating budget.

12 Budget and Financial Reporting must certify the availability of funds for all positions and

administrators to ensure that the data is accurate, timely, and complete by performing

monthly reviews.

Management Response

Concur. In addition the Position Control / EMS Exception Report was created and is being used

to ensure accurate information. The responsibility for updating the Employees Management

System (EMS) and Position Control (PC) data tables will be assigned to an individual.

Target Date: September 2009

Update Job Descriptions

We found that many of the job descriptions are not current and some job descriptions were not

available. In reviewing the HRD staff’s job descriptions, we found that they were also not current.

It appears that job descriptions are being updated as the jobs are being advertised. The updated job

descriptions are placed on the HRD web page.

Job descriptions must spell out the activities and responsibilities of each job, as well as the skills

and other criteria needed to do the job. Current and updated job descriptions will provide RPS with

an effective recruitment and retention tool. In addition, the job descriptions must promote proper

classification of employees; facilitate compliance with federal laws such as Americans with

Disabilities Act (ADA) and Occupational Safety and Health Administration (OSHA); defend the

school district against lawsuits and ensure adequate compensation of employees. Not having

current or updated job descriptions can increase the number of grievances from employees.


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Recruitment duties are time consuming making it difficult for a coordinator to maintain updated

job descriptions.

Recommendations

13 The new Director of Human Resources must ensure that all positions have job descriptions

and that job descriptions are current and in compliance with Federal regulations such as the

Americans Disabilities Act (ADA).

14 The new Director of Human Resources should consider outsourcing the task of updating the

job descriptions and appoint a staff member to keep job descriptions current.

Management Response




22

Follow Purchasing Guidelines

We reviewed Fiscal Year 2008 expenditures. The non-personnel expenditures by object code are

shown below:

Non- Personnel Expenditures for FY 2008 - By Object

Object Code Object Name Object Amount Line Description % of total

.5462 Non - Prof Svc – Purchased Education $358,676.09 Drug & Alcohol testing, attorney,

finger printing 44.53%

.5445 Tuition - Employee 240,941.47 Employees’ tuition reimbursements 29.91%

.5734 Recruitment Travel 102,893.70 Travel, petty cash, advertisement 12.77%

.5511 Advertising - Recruitment 45,047.33 Newspaper, magazine ads 5.59%

.5754 Services Awards 16,877.81 Trophies, baskets, catering, retirement banquet 2.10%

.5452 Temporary Svc - Clerical 20,373.35 Clerical workers 2.53%

.5615 Office Supplies 14,419.54 Office supplies, shredding, etc. 1.79%

Various Other Expenses 6,230.83 Fees, additional software, printing and binding, etc. 0.77%

Total $805,460.12 100.00%

During our review, we found payments to a vendor for approximately $62,000.00 per year for drug

testing. Each month the vendor invoices for drug testing are paid direct. RPS does not have a

contract with this vendor. In addition, RPS spends approximately $10,500.00 on non-contract

awards.

The Division of Purchasing may negotiate directly with one firm for a single or term contract for

non-professional services when the aggregate cost of all phases of the contract is not expected to

exceed $20,000. When the aggregate cost is expected to exceed $20,000, the purchasing office

shall solicit informally written bids from a least four (4) bidders or offerors.

According to the Division of Purchasing, when a company is used repetitively for goods or services

by the schools or departments, a bid must be obtained and a contract established for the goods or

services. When schools/departments do not follow the purchasing guidelines, they run the risk of

not obtaining goods and services at a reasonable cost. Small purchases were not monitored by the


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Purchasing Division and HRD did not inform them that they were using the vendor on a repetitive

basis.

Recommendation

15. The new Director of Human Resources must analyze the departmental expenditures and

inform the Division of Purchasing of goods or services that are needed on a repetitive

basis so that contracts are negotiated in accordance with RPS policies and procedures.

Management Response


Analyze the Functionality of the Database Systems Used to Archive Records

The staff uses two (2) database systems, Onbase and WinOcular, to capture and maintain

employees’ records. The problem is that the WinOcular system was bought to replace the old

Onbase system which is unstable and no longer has vendor support. Our concerns with the systems

used to archive employee records are as follows:

The WinOcular system is designed to be a paperless system, however all components have not

been installed.

The WinOcular system only has new applications and references.

WinOcular system is a standalone system that does not interface with position control or EMS.

Over the course of three years RPS has paid approximately $55,297 for the WinOcular

software.

The Onbase system has a backlog (see document scanning finding)

The Onbase system is unstable. There are times staff cannot access the system.

Some grievance and discipline cases are kept in folders and cannot be accessed online.

The Coordinators must access both systems to obtain needed information.


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In order for the staff to perform their duties in a fully efficient and effective manner, they must be

able to access records from one source. As stated earlier, the WinOcular system was originally

purchased to gain a paperless environment and to replace the Onbase system. The project is at a

standstill and there is no active installation team.

Recommendations

16. The new Director of Human Resources must analyze whether WinOcular meets the

needs of the Human Resources Department. If so, an installation team consisting of

HRD, Information Communication Technology Services (ICTS) and the Records

Department must be established to fully install WinOcular.

17. All future software selections must be reviewed by ICTS prior to purchase.

Management Response


Improve the Process for Scanning Records

We reviewed the document scanning process for employees’ records. The following are key

concerns:

There is a major backlog of the HRD records that need to be scanned.

Several employees’ files are incomplete because Coordinators are not submitting all documents

to the Senior Data Technician.

The data control sheet that would document what was collected from the Coordinators is not

used.

Some employees’ information is listed by name and not linked to a social security number

Some documents were scanned more than once

The types of documents scanned into preset categories are inconsistent

Some of the documents scanned are not legible on the screen

Some documents were not scanned into categories but placed in one file


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According to the Scanner Handbook for Onbase and Human Resources Department Records, a

control log of daily pickup should be maintained. The instructions give a detail description of how

the records must be scanned into the Onbase system.

The employee responsible for scanning the HRD records is also responsible for scanning the

student records and some payroll records. The scanned records are held for three months and then

sent to a company to be shredded. With only one person currently assigned to scanning documents,

a backlog has been created. According to the Senior Data Technician, the HRD records are scanned

first followed by payroll and student records. Delayed submission of records may also create a

backlog. According to the Senior Data Technician the coordinators have requested a return of

records that have not been scanned on the Onbase system. The procedures for scanning documents

are not being followed. According to the Senior Data Technician he had not seen the written

procedures for the process. The job appears to be too large for one employee and a part-time work-

study student.

Recommendations

18. The new Director of Human Resources should purchase scanners and assign staff within

the HRD to scan documents.

19. The HRD staff and Records Management staff should review and follow the written

procedures for scanning documents.

20. The Senior Data Technician must store records in fire proof file cabinets.

21. The new Director of Human Resources should consider temporarily using an outside

vendor to scan documents and eliminate the backlog.

Management Response



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Implement an Employee Termination Checklist

We compared RPS’ employee exit process to best practices. The following are key items that are

not being consistently addressed:

Ensuring that the employees no longer have access to the mainframe computer by terminating

the user name and pass codes, disabling the email account, changing passwords for any shared

computer and redirecting telephone numbers.

Ensuring that the employees have returned all RPS property such as: keys, parking pass, ID

badge, computer, credit card, cell phone, etc.

Ensuring that employees leave department files, (manual and electronic files)

Scheduling a confidential exit interview to discuss work environment, etc. with key members

of RPS staff.

Analyze and review the employees’ exit survey and include the survey with other documents

that have been scanned onto Onbase.

Failure to implement a detail employee termination may result in the loss of equipment and

sensitive data. Each administrator must have an employee termination checklist to complete when

an employee resigns or is terminated. HRD recently updated the Resignation and Termination

Package. However, a termination checklist was not included in the package.



As shown in the example below, the checklist should include all departments involved in the

employee exit process.

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Recommendations

22 The new Director of Human Resources should design and implement an employee

termination checklist for all administrators to use when an employee resigns or terminates

employment with RPS. When designing the checklist, the Director should consult with

other departments to ensure a comprehensive checklist is developed. The checklist must be

completed for each exiting employee and returned to the HRD to be included in the

employee’s file within two weeks of employee’s separation.

Management Response


Improve the Tracking of Grievances and Discipline Cases We reviewed the HRD files to determine whether procedures are in place for the identification,

documentation, investigation and final resolution of employee grievances. During the review we

found:

A spreadsheet was created to capture the information about employees discipline, incident and

fact finding cases. However, there is no spreadsheet or database to capture the employees’

grievances.

A three ring binder was being used for the employees’ grievances, with notes attached to track

the progress of some grievances. The list provided by HRD did not contain all of the employees

that had filed a grievance. We compared the information in the 3 ring binder with the list and

found that the list was not complete. HRD does not have a comprehensive employee grievance

listing.

Information on grievances is not maintained in the same manner. Some of the letters are in

Onbase and some are maintained in a file cabinet in the Administrative Assistant’s office.

The auditor was unable to determine the disposition of all of the employees that had filed a

grievance.


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The Richmond Public Schools grievance process, mirrors §22.1-309 of the Code of Virginia. The

grievance process consists of 4 specific steps that can take up to 60 days without a fact finding panel or

up to 105 days with a fact finding panel.

Each step of the process should be documented. Some of the employees’ cases have remained

unresolved even though enough time has passed to complete the process. Because of an infective

tracking system, some case status is not readily available.

Recommendations

23 The new Director of Human Resources must implement a comprehensive tracking

system, such as a database or spreadsheet to record the progress of each grievance. The

database should include, but not be limited to, the employee’s name, location, issues,

steps taken, date of the steps and the final results. The database should be updated

weekly.

Management Response


Reorganize Duties of the Senior Human Resources Associate in the Substitute Office

We found that the Senior Human Resource Associate assigned to the Substitute Office has several

major job duties. We observed the workflow and process. The job that was previously handled by

two full-time and one part-time employee is now being performed by one full-time FTE and a

temporary worker. The position which is a grade eleven is responsible for the recruitment of

substitutes which includes, reviewing applications; selecting the best candidates; interviewing the

potential substitutes; hiring the best qualified applicant; and providing orientation and training.

The position is also responsible for operating the Substitute Employee Manager System (SEMS).

This responsibility includes updating the database; performing daily backups; monitoring the

morning call-outs; answering the help desk calls; developing and facilitating training for all users;

and all other duties associated with SEMS.


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A survey of the principals and assistant principals revealed complaints about the lack of responses

for problems that occur with substitutes and the SEMS system. The Senior Human Resources

Associate is working a lot of compensatory time trying to keep up with the work. However, her

emails, phone calls and other duties are being neglected. The HR Coordinators, who are a grade 19

and are required to have a Master’s degree, are responsible for recruiting all RPS personnel with

the exception of substitutes.

Recommendations

24 The new Director of Human Resources should review the duties of the Senior Human

Resources Associate in the Substitute Office and reassign the recruitment of substitutes

to a HR coordinator.

25 The new Director of Human Resources should determine if other duties could be

reassigned to another HRD employee.

Management Response

Concur. The new system currently in place has been in use for one year and is working very well.

The new Director, when employed will look at the organization to reassign the positions for the

purpose which the substitute office is designed.


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OTHER MATTERS TO CONSIDER

Department of Professional Development reports directly to the Assistant Superintendent of

Administrative & Support Services. The department consists of the director and two

clerical FTEs. The department is responsible for the staff development delivery plan for all

employees. However, the departmental budget does not include district-wide staff

development dollars. The staff development budget is assigned to the Department of

Human Resources. The Department of Human Resources processes tuition reimbursement

requests. These requests show the type of classes and training taken by employees. This

information will help the Director of Professional Development in the preparation of staff

development delivery plan. The expenditures for staff development dollars must be aligned

with the staff development delivery plan. We recommend transferring the staff

development budget to the Department of Professional Development.

A comprehensive study of the existing pay and classification plan for all employees is

needed. The last study was conducted in 1995. Many job duties and functions have

changed over the years. The current classification and pay does not reflect changes in the

job functions.

The Records Management Section is responsible for the records retention schedule and

transcripts. Also, the section is responsible for scanning human resources files, payroll

files, and student records. The staff reports to the Director of Information, Communications

and Technology Services (ICTS). However, the worked performed by this section is not

related to the mission or goals of ICTS. The Records section is located in City Hall and

ICTS is located at RTC-North. We recommend that the Superintendent consider

reassigning the supervision of the Records section.


Acknowledgements

The results of the audit were discussed with the interim Director of Human Resources and with the

Assistant Superintendent of Administrative & Support Services. We appreciate the excellent

assistance and cooperation provided us by the personnel of the Department of Human Resources.

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A Publication of Richmond Public Schools Richmond, Virginia

In accordance with federal laws, the laws of the Commonwealth of Virginia andthe policies of the School Board of the City of Richmond, the Richmond PublicSchools does not discriminate on the basis of sex, race, color, age, religion, disabilities or national origin in the provision of employment and services. TheRichmond Public Schools operates equal opportunity and affirmative actionprograms for students and staff. The Richmond Public Schools is an equal opportunity/affirmative action employer. The Title IX Officer is Mrs. Angela C.Lewis, Clerk of the School Board, 301 N. 9

th

St., Richmond, VA 23219-1927, (804) 780-7716. The Section 504 Coordinator is Mr. Harley Tomey, Director ofExceptional Education and Student Services, 301 N. 9

th

St., Richmond, VA, 23219-1927, (804) 780-7911. The ADA Coordinator is Ms. Aisha Shamburger, 2015Seddon Way, Richmond, VA 23230-4117, (804) 780-6211. The United States Department of Education’s Office of Civil Rights may also be contacted at P. O. Box 14620, Washington, DC 20044-4620, (202) 208-2545.

School Board

Chandra H. Smith, Chairman Kimberly B. Gray, Vice Chairman

Kimberly M. Bridges Betsy B. Carr

Donald L. Coleman Adria A. Graham Scott Norma Murdoch-Kitt

Dawn C. Page Evette L. Wilson

Dr. Yvonne W. Brandon, Superintendent

Review of the Human Resources Department uly 1, 2007 – May ...

Documents

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