HomeMy WebLinkAboutAudit - Other Publications - Public - FY2019 Ethics Hotline Complaint - 12/13/2018
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City Auditor’s Office 1 Ethics Hotline Complaint
Date: December 13, 2018
To: Kevin R. Phelps, City Manager
From: Candace MacLeod, City Auditor
Subject: FY2019 Ethics Hotline Complaint
The City Auditor’s Office (CAO) administers the City’s Ethics Hotline program. The
primary objective of the Ethics Hotline is to provide a means for employees to report
any activity or conduct related to personnel, resources, or operations for which they
suspect instances of ethical violations, fraud, waste, or abuse.
Allegation
On September 13, 2018, the following ethics complaint was received from a City
employee, requesting to remain anonymous:
The communications project manager position was discussed with and offered to an
employee before the position was posted. The position was posted on a Saturday and
closed the following Monday. The employee that was hired for the position received a
20% pay increase. The IG coordinator position was filled in a similar manner and posted
for one business day.
Process
Meetings were held with the Director of Human Resources (HR) & Risk Management, the
City Attorney, the Assistant City Manager that oversees Human Resources, and the City
Manager to discuss the complaint and additional information and documentation was
requested relating to the two recruitments. HR and City management advised the
auditor that both positions were closed promotional recruitments, and not
appointments.
Response to the Allegation
The Director of HR & Risk Management, through the Assistant City Manager that
oversees HR, informed the City Auditor that no inquiry or investigation would be
performed for either of the two recruitments as there were no policy or ethical
violations. An August 17, 2018 email from the City Manager was referenced, indicating
that the employee requested that they be considered for the position and while the
City Manager has the authority to appoint, the employee was required to go through
the interview process. The interview process was completed, and an elected official
was comfortable with the City Manager approving the employee for the position once
the process was complete.
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City Auditor’s Office 2 Ethics Hotline Complaint
The following facts were substantiated by the auditor:
• The communications project manager position was discussed with the employee
that was hired for the position before the job was posted.
• The compensation offered to the employee for the communications project
manager position was $449 above the mid-point of the range and represented a
22% pay increase. The communications project manager position was one grade
higher than the candidate’s current job grade.
• The communication project manager position was posted to the City’s online job
portal for 3 days. (2 non-business days (Saturday and Sunday) and 1 business day
(Monday))
• The IG coordinator position was posted to the City’s online job portal for 3 days. (1
business day and 2 non-business days)
• One candidate applied for the communications project manager position and was
offered the position after the interview process was completed.
• One candidate applied for the IG coordinator position and was offered the position
after the interview process was completed.
Additionally, HR advised that employees can submit job interest cards for positions,
ensuring that they will receive an email notification when a position of interest is posted
to the City’s online job portal. However, HR informed the auditor that job interest cards
were not submitted for the communications project manager position.
Observations & Recommendations
Upon review of the complaint and the information provided by HR & City
Management, the following is recommended:
1. Establish controls over the length of time a position should be posted
HR Policy 201, Employment, states that HR & Risk Management will advise departments
on advertising and outreach approaches to ensure a diverse applicant pool.
Additionally, notices of all City recruitments will be posted on the City’s website and any
other sources identified by the hiring authority and HR & Risk Management. However,
HR 201 does not specify the minimum number of business days a position should be
posted. In the case of the allegation, the positions were posted for only one business
day, which may not provide qualified employees with a fair and equitable opportunity
to apply for the position. Additionally, if employees feel overlooked, there could be
cause for discrimination if Title VII provisions were excluded. Furthermore, HR, acting as
an independent third party, should work with the hiring manager to ensure the
recruitment process protects the best interests of both employees and the City.
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City Auditor’s Office 3 Ethics Hotline Complaint
Recommendation
1.1 The City review and update HR 201 to specify the minimum number of business
days a position should be posted. If the pre-established minimum number of
business days needs to be changed for a recruitment, the City Manager, or their
designee’s approval, should be required.
1.2 HR train hiring managers on the policy to ensure a transparent and consistent
recruitment and selection process.
Management Response
1.1 Concur. Human Resources will review and update HR Policy 201 to recommend
the number of days a position should be posted which can be changed with
City Manager, or their designees’ approval by April 30, 2019. Before an offer of
employment is offered, HR reviews the salary level and work experience of the
applicant. For the communications project manager, the salary level agreed to
was 9%, or $6,797, below the salary level of the previous incumbent and
appropriate based on the experience of the candidate being hired.
1.2 Concur. Human Resources will train hiring managers on the recruitment and
selection process by June 30, 2019.
2. Clarify the reference check process for closed competitive positions
HR Policy 201 states that reference checks will be conducted on all applicants that are
being considered for hire prior to an offer being extended. HR will review and approve
all reference check information obtained prior to a job offer being extended. The
auditor requested reference checks conducted for the communications project
manager and IG coordinator positions. HR responded that reference checks are
conducted on all individuals who are hired into the City, in accordance with policy,
and reference checks do not need to be repeated for the promotional process as
those employees have already been vetted. Additionally, HR reported that hiring
managers can always review the personnel file or discuss the employee’s performance
with a previous supervisor. However, none of this information is explained in HR 201 and
is therefore subject to interpretation by the hiring supervisor.
Recommendation
2.1 The City review and update HR 201, clarifying the reference check process for all
types of recruitment defined in policy.
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City Auditor’s Office 4 Ethics Hotline Complaint
Management Response
2.1 Concur. Human Resources will review and update HR Policy 201, clarifying the
reference check process consistent with current practice by April 30, 2019.
3. Enhance controls to ensure appointments are a separate and distinct process from
closed competitive recruitments in both fact and appearance
HR 201 states that the City Manager, in accordance with Article III, Section 3(3) of the
City Charter, may appoint employees of the City, subject to such merit system
regulations the Council may adopt.
HR 201 also states that vacancies will be filled through either an open competitive
recruitment process open to the public and current and temporary employees, or a
closed competitive recruitment process, open to current regular status employees and
temporary personnel.
Although these are two separate processes as defined in policy, there is a risk that the
recruitment process followed for the communications project manager may appear to
be a combination of both an appointment and closed competitive recruitment.
Additionally, the HR Director reported that he was unaware of the length of time the
communications project manager position was posted. This reduces transparency and
causes confusion in the way the City applies policies and conducts recruitments. It may
also lead employees to believe that there is favoritism in the hiring process. Furthermore,
the risk of employee complaints relating to the City’s hiring practices increases.
Recommendation
3.1 The City establish additional controls to ensure appointments and closed
competitive recruitments are separate and distinct processes in both fact and
appearance. Controls should include ensuring the HR Director is informed of all
recruitment plans relating to positions in the City Council Office and the Mayor’s
Office.
Management Response
3.1 Concur. Human Resources will review and update HR Policy 201 to distinguish
that appointments and closed competitive recruitments are separate and
distinct processes. The HR Director will work with the City Manager, the Assistant
City Manager, or the Director of Public Affairs on all recruitments relating to
positions in the City Council Office and the Mayor’s Office.
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City Auditor’s Office 5 Ethics Hotline Complaint
4. Develop a policy for Mayor and Council involvement in the employee recruitment
process
The City Charter and Code of Conduct for elected officials states that the Mayor and
Council shall not be involved in administrative functions of the City.
HR indicated that the Mayor and Council have been provided the opportunity by the
City Manager to interview employees that would be working directly for them. HR
reported that while they cannot make the hiring decision, they can provide
appropriate feedback and a recommendation to the hiring manager. In the case of
the communication projects manager position, an elected official participated on the
interview panel and signed the panel recommendation form recommending that the
candidate be further considered by the hiring manager. However, a City policy
explaining the Mayor and Council’s role in the employee recruitment process has not
been developed. Lack of written procedures may result in inconsistent application of
the current informal process. Furthermore, a defined policy will increase transparency,
clarify roles, and reduce the risk of non-compliance with City laws and regulations.
Recommendation
4.1 The City develop and communicate a policy explaining Mayor and Council
involvement in the employee recruitment and interview process.
Management Response
4.1 Concur. Human Resources will review and update HR Policy 201 and explain to
hiring managers that while appropriate feedback can be obtained from elected
officials as necessary, a panel recommendation form should not be signed by
elected officials.
Please let me know if you have any questions.
cc: Chris Anaradian, Assistant City Manager
Michael D. Bailey, City Attorney
Jim Brown, Director of Human Resources & Risk Management
Tom Duensing, Assistant City Manager