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HomeMy WebLinkAboutAudit Reports - Public - City of Glendale - Position Control Evaluation - 9/8/2021 FINAL REPORT City of Glendale POSITION CONTROL EVALUATION September 8, 2021 Moss Adams LLP 999 Third Avenue, Suite 2800 Seattle, WA 98104 (206) 302-6500 City of Glendale Position Control Evaluation FOR INTERNAL USE OF CITY OF GLENDALE ONLY Table of Contents Executive Summary 1 A. Objectives 1 B. Conclusions 1 C. Commendations 3 Detailed Report 4 A. Introduction 4 B. Background 4 C. Objectives 4 D. Scope and Methodology 4 Findings and Recommendations 6 Position Control Process 14 Appendix A: Definitions of Audit Findings Rankings 20 City of Glendale Position Control Evaluation | 1 FOR INTERNAL USE OF CITY OF GLENDALE ONLY EXECUTIVE SUMMARY Moss Adams LLP (Moss Adams) was contracted by the City of Glendale (the City) to perform an evaluation of the position control process. This audit was performed as part of the Fiscal Year (FY) 2020 Annual Audit Plan developed by the City’s Independent Internal Audit Program (IIAP). Position control is a system of tracking information based on positions rather than employees. Within this structure, each individual job is assigned a unique Position Control Number (PCN) that tracks all relevant position data (including title, salary range, and grade), regardless of whether there is a specific employee assigned to the role. The primary function of position control is to ensure that all position-related data is correctly reflected in the system of record and to ensure that accurate budgetary tracking can take place. Within the City, staff in both the Human Resources (HR) and Budget and Finance Departments provide the primary support for the position control process. See Section IV for a detailed description of the current process, roles, and responsibilities. We performed a variety of procedures to test internal controls and assess the position control function, including testing a sample of position data changes approved by the City Council (Council), analyzing user access levels within Tyler MUNIS, and documenting the comprehensive position control process. This engagement was performed in accordance with Standards for Consulting Services established by the American Institute of Certified Public Accountants. Accordingly, we provide no opinion, attestation, or other form of assurance with respect to our work or the information upon which our work is based. This engagement was also performed consistent with guidance issued by the Institute of Internal Auditor’s (IIA) International Professional Practices Framework (IPPF). This report was developed based on information gained from our interviews and analysis of sample documentation. The procedures we performed do not constitute an examination in accordance with generally accepted auditing standards or attestation standards. Our objectives for this engagement were to: • Assess the efficiency of the position control process and identify areas for continuous improvement. • Evaluate the completeness, accuracy, and reliability of the current position control data. In general, the City has a set of processes that provide adequate management of the position control function. However, interviews, procedure reviews, and testing identified several areas that could be strengthened. These are highlighted in the following table: City of Glendale Position Control Evaluation | 2 FOR INTERNAL USE OF CITY OF GLENDALE ONLY Access Control – Moderate Risk 1 Finding The Tyler MUNIS system provides access control to limit the number of employees who can add or edit PC information. However, the City has not historically monitored system roles to ensure access is appropriately limited. Recommendation On a quarterly or annual basis, assess system access levels against the position control function in Tyler MUNIS, and remove access for all individuals who do not have a need for access based on their current job responsibilities. Position Control Monitoring – Moderate Risk 2 Finding While the City monitors salary expenditures by department on a quarterly basis, it has not yet implemented additional strategies to monitor position control. Recommendation Regularly monitor position control data by running and reviewing relevant reports on a quarterly basis, including: • Vacancy reports to identify unfilled positions • PCN reports to identify double-filled positions • Comparison reports to ensure that position salary grade changes approved by Council are accurately reflected in Tyler MUNIS Data Accuracy – Low Risk 3 Finding In general, position changes (and related salary changes) are appropriately approved and captured within Tyler MUNIS. However, there are significant discrepancies in position data in the Annual Budget Book. Recommendation Compare the Annual Budget Book, Schedule 6 data against the Tyler MUNIS PCN data to identify and correct errors. Establish a process with adequate controls to ensure position data is accurately captured. Position Control Documentation – Low Risk 4 Finding While the City has developed position control processes, they have not yet documented them within a formal policy or procedure. Recommendation Develop a position control policy and/or procedure to document relevant roles and responsibilities. City of Glendale Position Control Evaluation | 3 FOR INTERNAL USE OF CITY OF GLENDALE ONLY Although the focus of this internal audit was to identify opportunities for improvement, it is important to note the areas that are operating well. The City should be commended for the following accomplishments: • Engaged Staff: During our interviews and the data request process, City staff who were assigned to this project were extremely responsive and collaborative. • City Council Involvement: In alignment with industry best practice, the City Council is actively involved in approving new, reclassified, or eliminated positions. • Interdepartmental Collaboration: The Human Resources and Budget and Finance Departments both play active roles in position control. Based on staff interviews and procedure documentation, it is clear these teams are working together effectively to ensure that the process to approve, reclassify, or eliminate positions is working smoothly. We would like to thank City staff and management for their willingness to assist with this project. City of Glendale Position Control Evaluation | 4 FOR INTERNAL USE OF CITY OF GLENDALE ONLY DETAILED REPORT Moss Adams was contracted by the City to perform an evaluation of the position control process. This audit was performed as part of the Fiscal Year (FY) 2020 Annual Audit Plan developed by the City’s Independent Internal Audit Program (IIAP). Our internal audit was performed between April and June 2021. Within the City, staff in both the HR and Budget and Finance Departments provide the primary support for the position control process. See Section IV for a detailed description of the current process, roles, and responsibilities. Position control is a system of tracking information based on positions rather than employees. Within this structure, each individual job is assigned a unique Position Control Number (PCN) that tracks all relevant position data (including title, salary range, and grade), regardless of whether or not there is a specific employee assigned to the role. The primary function of position control is to ensure that all position-related data is correctly reflected in the system of record and to ensure that accurate budget tracking can take place. An effective position control system establishes checks and balances among personnel decisions, budgeted appropriations, and employee paychecks. An effective position control system will: • Have unique position control numbers for each position • Contain only Council-authorized positions • Contain only valid, funded positions • Provide timely and accurate information • Be used as a forecasting tool • Be fully integrated with the payroll, accounting, budget, and HR systems or modules • Allow salary payments only to authorized positions The City’s FY 2020-21 Audit Plan identified the need to perform a position control assessment to determine the efficiency and effectiveness of the process, review adherence to policy and examine the completeness, accuracy, and reliability of data to reduce risks and minimize errors. Our objectives for this engagement were to: • Assess the efficiency of the position control process and identify areas for continuous improvement. • Evaluate the completeness, accuracy, and reliability of the current position control data. City of Glendale Position Control Evaluation | 5 FOR INTERNAL USE OF CITY OF GLENDALE ONLY In order to obtain an understanding of the specific processes and overall position control function, we conducted interviews with representatives from the HR and Budget and Finance Departments who have designated responsibilities related to establishing, monitoring, updating, and deactivating position control numbers and related data. We also reviewed selected system reports and Council documentation. Finally, we performed the following detailed testing procedures: • Policies and Procedures: We requested all current documentation related to position control processes and received the Compensation and Classification Policy (Human Resources Policy No. 301). We reviewed the policy for any information related to the position control process (and related processes to establish and approve positions, reclassify positions, and eliminate positions), given that policies and procedures specific to the position control function have not yet been established. • Position Data: To assess whether PCN-related position data (including title and salary) was accurately captured within the Tyler MUNIS system, we performed a series of six tests to: ○ Validate whether position changes are appropriately approved by HR before submission to the Council ○ Validate whether position changes approved by the Council are accurately reflected in Tyler MUNIS ○ Validate whether salary grade changes are accurately reflected in the Classification Study Status Report ○ Validate whether approved salary grades are accurately reflected in Tyler MUNIS ○ Validate whether current salaries fall within approved ranges ○ Validate whether position changes are accurately reflected in the Annual Budget Book • Systems Access to PCN Information: To assess whether systems access to the PCN data in Tyler MUNIS was properly restricted to authorized individuals based on their job responsibilities, we obtained a MUNIS system access report. The report was system-generated and showed all current access levels assigned, including the functionality of each access level and the individuals assigned to each level. We assessed the report for appropriateness based on our understanding of the individuals responsible for PC management. City of Glendale Position Control Evaluation | 6 FOR INTERNAL USE OF CITY OF GLENDALE ONLY FINDINGS AND RECOMMENDATIONS 1 . Finding The Tyler MUNIS system provides access control to limit the number of employees who can add or edit PC information. However, the City has not historically monitored system roles to ensure access is appropriately limited. Recommendation On a quarterly or annual basis, assess system access levels against the position control function in Tyler MUNIS, and remove access for all individuals who do not have a need for access based on their current job responsibilities. Risk Rating Moderate Condition: The Tyler MUNIS system provides access control to limit the number of employees who can add or edit PC information. Based on the access control report requested as part of this assessment, the following position types have access to edit position data: ROLE KEY DESCRIPTION NUMBER OF ASSIGNED AND ACTIVE STAFF USERS PROJECT_TEAM_RLE_HCM Role Applied to Team Members for Pre-Go LIVE - HCM 27 HR_J_BUDGET HR Job Role - Budget 3 HR_J_BA HR Job Role – HR Budget Analyst 4 HR_J_HR_AUDITOR HR Job Role - Auditor 9 MUNIS n/a 12 HR_J_PA_PREPARER_21 HR Job Role – P/A Preparer - HR 3 HR_J_PA_PREPARER_17 HR Job Role – P/A Preparer – Community Services 3 HR_J_PA_PREPARE_1711 HR Job Role – P/A Preparer – Library 1 HR_J_PA_PREPARE_1713 HR Job Role – P/A Preparer – Community Housing 1 HR_J_PA_PREPARE_1716 HR Job Role – P/A Preparer – Community Revitalization 1 City of Glendale Position Control Evaluation | 7 FOR INTERNAL USE OF CITY OF GLENDALE ONLY ROLE KEY DESCRIPTION NUMBER OF ASSIGNED AND ACTIVE STAFF USERS HR_J_PA_PREPARE_1715 HR Job Role – P/A Preparer – Community Action Program 1 The number of assigned and active staff users listed above encompasses all employees assigned to a given role key. However, employees may be assigned to more than one role. In total, there were 52 unique employees with system access to position control data. As part of the data review for this assessment, it was discovered that several role types had system access that was no longer appropriate. To remedy the issue, the following five role types had their system access removed on April 21, 2021, as they are not currently responsible for processing position additions or changes. • HR_J_PA_PREPARER_17 • HR_J_PA_PREPARE_1711 • HR_J_PA_PREPARE_1713 • HR_J_PA_PREPARE_1716 • HR_J_PA_PREPARE_1715 Currently, the City does not regularly monitor system roles to ensure that access is appropriately limited. Criteria: Internal controls best practices recommend adequately restricting, controlling, and reviewing on a regular basis all system access level to sensitive areas. System access should always be restricted to individuals whose current job roles and responsibilities require it, to prevent inaccurate or inappropriate changes or access to data. Cause: Since the adoption of the Tyler MUNIS system, the City has not established or documented a process to regularly monitor system roles to ensure that access is appropriately reviewed and restricted. Effect: Without regularly monitoring system roles, it is possible that staff who no longer require system access as part of their core job function will still be able to add or edit position data. By not adequately restricting system access to position data, there is a risk that individuals who should not process position additions or changes could process them. Although position data is reviewed as part of the quarterly and annual budget process, an inappropriate change or addition may not be identified in a timely manner. Recommendation: A. Current system access levels should be assessed for all staff members, and access to add or edit position data should be restricted to only those individuals responsible for performing those functions as part of their job responsibilities. City of Glendale Position Control Evaluation | 8 FOR INTERNAL USE OF CITY OF GLENDALE ONLY B. A system access report should be run on a quarterly or annual basis to ensure access to this sensitive function is properly restricted. The review should be documented, and that documentation should be maintained by the HR and/or IT Department. Management Response Management Agreement Owner Target Completion Date Concur HR October 31, 2021 Action Plan: All access/roles in Tyler MUNIS for HR staff are currently being reviewed. This review will include position control access. We identified access/roles as an issue prior to this audit. As part of this overall review, HR will add an annual position control access audit to our list of audits. All audits will continue to be documented and maintained in HR. 2. Finding While the City monitors salary expenditures by department on a quarterly basis, it has not yet implemented additional strategies to monitor position control. Recommendation Regularly monitor position control data by running and reviewing relevant reports on a quarterly basis, including: • Vacancy reports to identify unfilled positions • PCN reports to identify double-filled positions • Comparison reports to ensure that position salary grade changes approved by the Council are accurately reflected in Tyler MUNIS Risk Rating Moderate Condition: Based on interviews, the City does not currently perform any specific audits or report reviews related to position control or PCNs. However, there are currently two primary monitoring and oversight processes that intersect with position control. 1. Annual Budget Process: As part of the preparation for the new budget cycle, the Budget and Finance Department compares all position expenses to the previously adopted budget. For this review, the team runs a Budget-to-Actuals Report to identify any expenditure anomalies. Within the report, the team checks for personnel expenditures that are higher than budgeted, and for any positions that have two staff members assigned to the same PCN (double filling a position). Anomalies are reviewed with the relevant departments to find a resolution or explanation. 2. Quarterly Budget Meeting: The Budget and Finance Department holds quarterly budget meetings with each department to review expenditures. During this meeting, the team compares each salary line within the Budget-to-Actuals Report to first identify anomalies and then find a resolution or explanation. City of Glendale Position Control Evaluation | 9 FOR INTERNAL USE OF CITY OF GLENDALE ONLY Criteria: Industry best practice standards recommend that position data is regularly monitored to verify accuracy and completeness. Cause: Since the adoption of the Tyler MUNIS system, the City has not established or documented a process to regularly review standard oversight reports, apart from those used during the quarterly and annual budget process. Effect: If the City lacks regular oversight of position control, errors or inappropriate changes to position data may not be identified in a timely manner. Recommendation: Establish regular position control monitoring by running and reviewing relevant reports on a quarterly basis. To maintain appropriate segregation of duties, reports should be reviewed by a staff member who is not involved in updating position control data. Reports should include: • Vacancy reports to identify unfilled positions • PCN reports to identify double-filled positions • Comparison reports to ensure that position salary grade changes approved by the Council are accurately reflected in Tyler MUNIS Management Response Management Agreement Owner Target Completion Date Concur HR August 31, 2021 Action Plan: HR will run a vacancy report and a double-fill report on a quarterly basis and will be reviewed by HR Management. HR will also run a report after reclassifications are processed to ensure accuracy and will be reviewed by HR Management. 3 . Finding In general, position changes (and related salary changes) are appropriately approved and captured within Tyler MUNIS. However, there are significant discrepancies in position data in the Annual Budget Book. Recommendation Compare the Annual Budget Book, Schedule 6 data against the Tyler MUNIS PCN data to identify and correct errors. Establish a process with adequate controls to ensure position data is accurately captured. Risk Rating Low Condition: When position additions or changes are approved by Council, the data changes are entered into the Tyler MUNIS system by HR staff and reviewed by the Assistant HR Director (see Section IV. Position Control Process for more details). The position data includes, but it not limited to: City of Glendale Position Control Evaluation | 1 FOR INTERNAL USE OF CITY OF GLENDALE ONLY • Position title • Full Time Equivalent (FTE) • Job classification code • Salary range • Grade • Expenditure account code • Position status (filled, vacant, inactive, etc.) • The date the position was originally approved by the City Council • Location code • Risk code • Equal Employment Opportunity (EEO) class • EEO function This data then forms the basis for subsequent financial transactions—including employee payroll— and is used to support financial reporting. To validate the accuracy of position control data captured within Tyler MUNIS, we performed six tests detailed in the table below. GOAL DESCRIPTION FINDINGS Validate whether position changes are appropriately approved by HR before submission to the Council We selected a random sample of 12 PCNs. We then reviewed the Job Study Request Forms to ensure that each position (and related salary grade) had been appropriately approved and signed off on by both the HR Assistant Director and the HR & Risk Management Director before being submitted to the Council. We found no discrepancies. Validate whether position changes approved by the Council are accurately reflected in Tyler MUNIS For all position changes that occurred in FY 2019-20, we compared the position change data documented in various Classification Study Status reports (which summarize requested position changes and additions outside of the annual budget process that are brought to Council for approval) to the system-generated list of PCNs and related job titles. We found no meaningful discrepancies. Validate whether salary grade changes are accurately reflected in the Classification Study Status Report For the random sample of PCNs, we compared the position title and salary grade captured within the Classification Study Status Report FY 2019- 20 (a spreadsheet that is manually edited by the HR Department to track relevant position change information) against the Job Study Request Forms data. We found no meaningful discrepancies. There was one salary grade discrepancy that staff report was due to a typing error. This issue was corrected when the job was entered in Tyler MUNIS. Validate whether approved salary grades are accurately reflected in Tyler MUNIS For the random sample of PCNs, we compared the minimum salary grade in the Tyler MUNIS- generated Position Control Report against the approved grade listed on the Job Study Request Forms. We found no meaningful discrepancies. The salary grade of four positions no longer match their initial Job Study Request form, as they were increased in FY 2020- 21 as part of a Council- approved market study adjustment. City of Glendale Position Control Evaluation | 7 FOR INTERNAL USE OF CITY OF GLENDALE ONLY GOAL DESCRIPTION FINDINGS Validate whether current salaries fall within approved ranges For the random sample of PCNs, we compared the current salary listed in the Tyler MUNIS- generated Position Control Report against the minimum and maximum salary range listed in the Classification Study Status Report FY 2019-20. We found no discrepancies— all 12 positions were within the approved range. Validate whether position changes are accurately reflected in the Annual Budget Book For all position changes approved by the Council in FY 2019-20, we compared the system- generated list of PCNs and related job titles against the job titles listed in the FY 2020-2021 Annual Budget Book (Schedule 6: Authorized Staffing). We found significant discrepancies. Many position reclassifications that involved a change in title were not accurately represented. Based on these tests, our general inferences are that: • Positions are appropriately approved by HR before submission to the Council • Positions that are approved by the Council are accurately reflected in Tyler MUNIS • The City’s current system appears to effectively ensure staff are not over- or under-paid due to position control data errors. However, there are opportunities to improve internal processes to ensure that position titles are accurately captured in the Annual Budget Book. Criteria: A critical purpose of the position control function is to ensure that all position-related data is correctly reflected in the system of record and to ensure that accurate budget tracking can take place. Cause: The City has not performed systematic audits or reviews that compare the position data against the City’s financial documents. The City is also missing a critical internal process to ensure that position data is correctly represented in the Annual Budget Book. Effect: Inaccurate position data creates barriers to transparent communication to staff, the Council, and members of the public. In addition, if financial or compliance-related position data is inaccurately documented at any point in the process between position approval and entry into the Tyler MUNIS system, it can create significant risks for the City—including the potential for over- or under-paying employees. Recommendations: Compare the City’s Annual Budget Book data (including position title and salary) against Tyler MUNIS PCN data to identify and correct current errors. Establish a process with adequate controls to ensure that position data is accurately represented across City financial documents, including but not limited to the Annual Budget Book. Management Response Management Agreement Owner Target Completion Date Concur HR, Budget and Finance September 30, 2021 Action Plan: Budget and Finance will work with HR to develop a process to ensure position data are accurately presented in the Annual Budget Book. City of Glendale Position Control Evaluation | 8 FOR INTERNAL USE OF CITY OF GLENDALE ONLY 4 . Finding While the City has developed position control processes, they have not yet documented them within a formal policy or procedure. Recommendation Develop a position control policy and/or procedure to document relevant roles and responsibilities. Risk Rating Low Condition: Based on interviews and document requests, we established that the City has developed a detailed position control process (see Appendix). Specific aspects of position control have been documented in City policies—for example, position reclassification and approval requirements are documented in the Compensation and Classification Policy (Human Resources Policy No. 301). However, the wholistic process has not yet been documented within a formal policy or procedure. Criteria: Industry best practice standards recommend that all governmental entities formally document position control-related policies and procedures, including those covering the internal process to establish and approve positions, reclassify positions, eliminate positions, and ensure that position data is appropriately captured in the relevant systems. Cause: The City does not have current policies and procedures for position control processes. The current Council approval and budget process is robust, which has reduced the need in the past for this type of documentation. Effect: Without documented policies and procedures, the City risks loss of institutional knowledge if key staff members exit the organization or are on leave for an extended period of time. This also impacts internal controls and monitoring, as roles and responsibilities have not been clearly articulated or agreed upon across departments. Recommendation: Comprehensive policies and/or procedures should be developed and implemented that specifically address the position control function. Roles and responsibilities between departments and functions should be well-defined and compliance should be monitored. Comprehensive policies and procedures should include all significant areas within the position control function, including but not be limited to the following: • New position approval, documentation, and PCN creation • Position data change requirements, reviews, and approvals, including specifically defining which staff members are responsible for verifying changes • Deactivation of PCNs • Monitoring of position-related data, including standard monitoring reports, roles and responsibilities, and coordination of data across City documents (including financial and budget documents) • Segregation of duties between position approvals, edits, and deactivations, and position data monitoring City of Glendale Position Control Evaluation | 9 FOR INTERNAL USE OF CITY OF GLENDALE ONLY • Systems access controls and related access reviews Management Response Management Agreement Owner Target Completion Date Concur HR, Budget and Finance September 30, 2021 Action Plan: HR and Budget will create a position control process document. City of Glendale Position Control Evaluation | 14 FOR INTERNAL USE OF CITY OF GLENDALE ONLY POSITION CONTROL PROCESS Moss Adams documented the current position control process, including current and recommended controls. PROCESS DESCRIPTION CURRENT CONTROLS RECOMMENDED CONTROLS POSITION APPROVAL Approval for the creation of a new PCN The creation of a new PCN begins with the approval for a new staff position within the City. There are two methods to approve new staff positions: 1. Within the Annual Budget Process: ● Department submits a Budget Supplemental request detailing the requested additional position. This document is reviewed three ways: ○ The Budget Supplemental is reviewed by the Budget and Finance Department to ensure the position information (including salary range) is correct. Vacant and new positions are budgeted at the midpoint of the salary range. ○ The Budget Supplemental is reviewed by the HR Department to ensure alignment with classification structure. ○ The Budget Supplemental is reviewed by the City Manager’s Office (CMO), the Budget and Finance Department, and the requesting department to discuss the requesting department’s needs. ● The Budget Supplemental is then reviewed by the Executive Management team as part of the budget balancing process to prioritize critical positions and determine whether they are affordable within the five-year forecast. ● Prioritized positions are then included in the CMO’s recommended budget and presented to the City Council for approval. ● The City Council approves or denies each position, and approved positions are included in the finalized City budget. 2. External to the Annual Budget Process: ● Department submits a Budget Supplemental request detailing the requested additional position. ● The City Attorney reviews the request to determine if it should be presented to the City Council. ● Position review by Budget and Finance Department ● Position review by HR Department ● Position review by CMO ● Position review and approval by Executive Management team ● Develop procedure documentation City of Glendale Position Control Evaluation | 15 FOR INTERNAL USE OF CITY OF GLENDALE ONLY ● Approved positions are presented to the City Council for approval. ● City Council approves or denies each position. PCN CREATION Once positions are approved, the HR Department receives a list of all new positions from the Budget and Finance Department. A limited number of positions within the HR and Budget and Finance Departments have the relevant system access to create a new PCN. These positions include the Assistant HR Director, Business Analyst, HR Technician, Administrative Support Supervisor, HR Program Manager for Classifications and Compensation, Budget Administrator, and Budget and Finance Analyst. ● HR staff create a new PCN for each new position. PCNs are selected in chronological order. Tyler MUNIS restricts PCNs, such that a unique PCN can only be utilized within the system once. ● For each PCN, the HR Business Analyst enters the relevant information. This information is then checked by the Assistant HR Director. The PCN information includes: ○ Position title ○ FTE ○ Job classification code ○ Salary range ○ Grade ○ Expenditure account code ○ Position status (filled, vacant, inactive, etc.) ○ The date the position was originally approved by the Council ○ Location code ○ Group B/U ○ Risk code ○ EEO class ○ EEO function ○ Appropriate OT table ● Access control within Tyler MUNIS restricts staff who can create or edit PCNs ● The system restricts duplicative PCNs ● Review by Assistant HR Director ● Run a quarterly or annual access controls report to review and limit access where feasible ● Develop procedure documentation POSITION RECRUITMENT PCN use in the Once a position is approved and the PCN is added to Tyler MUNIS, recruitment can begin for that position. ● Review by HR Business Partner ● Develop procedure documentation City of Glendale Position Control Evaluation | 16 FOR INTERNAL USE OF CITY OF GLENDALE ONLY recruitment process ● The requesting department submits a requisition to HR to begin the recruitment process. The department must list the PCN within that requisition. ● HR enters the PCN and related information into the applicant tracking system, NeoGov. The HR Business Partner confirms the existence of the PCN submitted by the department and is responsible for ensuring that the position information matches the data in Tyler MUNIS. One exception to this process is when HR chooses to begin the recruitment process in advance of Council approval of the position. If that occurs, HR indicates in the recruitment announcement that the position is pending Council approval. No positions can be actively filled until after the Council has approved the position and a PCN has been created following the steps outlined above. EDITING PC INFORMATION There are two major scenarios in which position data would be edited: 1. Expansion or contraction of the FTE of a position ● A change in the FTE of a position (for example, shifting a position from 0.5 to 1 FTE) is treated in the same way as a new position request, and must be reviewed and approved through the annual budget process. ● Once the FTE adjustment is approved by the Council: ○ HR updates the position FTE in Tyler MUNIS. ○ The HR Business Analyst makes the update within the system, and then the information is verified by the Assistant HR Director. ● Once the update has been made within Tyler MUNIS, the requesting department would create a Personnel Action (PA) form if the change in FTE impacts a current employee. The PA would trigger changes to the employee’s master record (which is separate from the position control data). 2. Position reclassification and/or restructuring ● Requesting departments must submit a Job Study Request Form, Position Documentation and Questionnaire form (for filled positions), updated organizational chart, and justification statement to the HR Department. ● Access control within Tyler MUNIS restricts staff who can create or edit PCNs ● Position change review and approval by CMO ● Position change review and approval by City Council ● Compensation and Classification Policy (Human Resources Policy No. 301) ● Run a quarterly or annual access controls report to review and limit access where feasible ● Develop procedure documentation City of Glendale Position Control Evaluation | 17 FOR INTERNAL USE OF CITY OF GLENDALE ONLY ● Departments must discuss with their HR Business Partners each reclassification request to ensure classification is appropriate based on need. ● Reclassification requests are presented to the City Council for approval at least four times a year, including during the annual budgeting process. ● Once reclassifications are approved by the City Council: ○ HR updates the position information in Tyler MUNIS. ○ The HR Program Manager makes the update within Tyler MUNIS, and then the information is verified by the Assistant HR Director. ● Once the update has been made within Tyler MUNIS, the requesting department would create a PA form if the change in position information impacts a current employee. The PA would trigger changes to the employee’s master record (which is separate from the position control data). DELETION OF PCNS PCNs that are no longer in active use can be de-activated by the same HR staff positions who are authorized to add or edit PCN information (see above). However, no PCN is deleted from the system to ensure that PCNs remain unique. ● Once the position elimination is approved by the Council: ○ The Budget and Finance Department notifies HR to deactivate the position in Tyler MUNIS. ○ The HR Business Analyst makes the update in the system, and then the information is verified by the Assistant HR Director. ● Council review and approval for eliminated positions ● Access control within Tyler MUNIS restricts staff who can deactivate PCNs ● Review by Assistant HR Director ● Develop procedure documentation POSITION CONTROL MONITORING The City does not currently perform any specific audits or report reviews related to position control or PCNs. However, there are currently several monitoring and oversight processes that intersect with position control. 1. Annual Budget Process ● As part of the preparation for the new budget cycle, the Budget and Finance Department compares all position expenses to the previously adopted budget. For this review, the team runs a Budget-to-Actuals Report to identify any expenditure anomalies. ● Budget and Finance review as part of the annual budget process (Budget-to-Actuals report) ● Budget and Finance review as part of the quarterly budget meeting (Budget-to-Actuals report) ● Run a quarterly vacancy report to identify approved but unfilled positions ● Run a quarterly PCN report to proactively identify double-filled positions ● Run a quarterly PCN report to ensure all staff City of Glendale Position Control Evaluation | 18 FOR INTERNAL USE OF CITY OF GLENDALE ONLY ● Within the report, the team checks for personnel expenditures that are higher than budgeted, and for any positions that have two staff members assigned to the same PCN (double filling a position). ● Anomalies are reviewed with the relevant departments to find a resolution or explanation. 2. Quarterly Budget Meetings ● The Budget and Finance Department holds quarterly budget meetings with each department to review expenditures. During this meeting, the team compares each salary line within the Budget-to-Actuals Report to first identify anomalies and then find a resolution or explanation. on payroll are assigned a PCN ● Develop procedure documentation City of Glendale Position Control Evaluation | 20 FOR INTERNAL USE OF CITY OF GLENDALE ONLY APPENDIX A: DEFINITIONS OF AUDIT FINDINGS RANKINGS We utilized the City’s Independent Internal Audit Program risk rankings, presented below, and assigned rankings based on our professional judgment. A qualitative assessment of high, medium, or low helps to prioritize implementation of corrective action, as shown in the following table. HIGH Critical control deficiencies that exposes the City to a high degree of combined risks. Recommendations from high-risk findings should be implemented immediately (preferably within three months) to address areas with most significant impact or highest likelihood of loss, misappropriation, or damage related to City assets. MODERATE Represents less than critical deficiencies that expose the City to a moderate degree of combined risks. Recommendations arising from moderate-risk findings should be implemented in a timely manner (preferably within six months) to address moderate risks and strengthen or enhance efficiency in internal controls on areas with moderate impact and likelihood of exposure. LOW Represents low-risk or control deficiencies, and the exposure is not likely to expose the City and its assets to significant losses. However, they should be addressed in order to improve efficiency and effectiveness of operations. Recommendations arising from low-risk findings should be implemented within 12 months.