Report I2016-1 All Recommendation Responses

Report I2016-1: Investigations of Improper Activities by State Agencies and Employees: Misuse of State Resources, Forgery, False Time Reporting, Financial Interests Disclosure Violations, and Waste of State Funds (Release Date: February 2016)

Case Number I2015-0478

Recommendation #1 To: Public Health, Department of

To ensure the supervisor does not misuse state time, Public Health should take appropriate corrective or disciplinary action against him for leaving during the middle of his shift without approval.

Agency Response From January 2016

Public Health reported in January 2016 that it counseled the supervisor about his actions and issued a counseling memorandum to him in October 2015.

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2014-0970

Recommendation #2 To: Fish and Wildlife, Department of

Fish and Wildlife should take appropriate corrective or disciplinary action against the employee for his improper governmental activities, including reducing the employee's leave balance by 14 hours to account for the two days he did not work and did not attend the retirement fair.

Agency Response From January 2016

Fish and Wildlife reported in January 2016 that the employee retired from state service in December 2015 before it could provide him with a notice of adverse action. As a result, Fish and Wildlife stated that it is unable to take corrective or disciplinary action against the employee for his improper governmental activities.

California State Auditor's Assessment of Status: Resolved


Case Number I2014-0970

Recommendation #3 To: Fish and Wildlife, Department of

Fish and Wildlife should recover $323 related to the employee's inappropriate reimbursement and misuse of state resources.

Agency Response From March 2016

Fish and Wildlife reported that the now-retired employee paid the State $323 related to his inappropriate reimbursement and misuse of state resources.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From February 2016

Fish and Wildlife reported that it sent an invoice to the now-retired employee to repay $323 within 30 days.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From January 2016

Fish and Wildlife reported that it would send an invoice to the now-retired employee for $323 related to his inappropriate reimbursement and misuse of state resources.

California State Auditor's Assessment of Status: Pending


Case Number I2014-0970

Recommendation #4 To: Fish and Wildlife, Department of

Fish and Wildlife should, in the future, require its employees to provide proof of their presence when attending trainings or business-related events on state time.

Agency Response From January 2016

Fish and Wildlife reported that it requires employees to complete a training form prior to and after attending most conferences and training. In addition, attendees are expected to attach any supporting certificates of completion after attendance. However, in this case, the training form was not necessary because of the nature of this particular conference. Fish and Wildlife reported that the employee's supervisor appropriately checked with the employee when he returned to work and it stated that the employee was not entirely forthcoming with the details about his actions.

California State Auditor's Assessment of Status: Resolved


Case Number I2014-0078

Recommendation #5 To: Health Care Services, Department of

To ensure the analyst does not continue to misuse state resources, Health Care Services should take appropriate corrective or disciplinary action for her misuse of her state computer and email for personal purposes.

Agency Response From August 2016

Health Care Services took disciplinary action in July 2016 that reduced the analyst's pay by 10 percent for a 12-month period effective August 2016.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From March 2016

Health Care Service reported in March 2016 that its human resources office anticipated determining the most appropriate corrective actions by June 30, 2016. However, it has not responded to our inquiries regarding the status of any corrective actions.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From March 2016

Health Care Services reported that the supervisor met with the analyst in December 2015 and verbally instructed the analyst to immediately cease using state resources to conduct personal business while at work. The supervisor also memorialized his verbal instruction to the analyst in an email to her. Further, Health Care Services stated that its human resources branch is still reviewing electronic data for the period from 2010 through 2015 and working with its office of legal services to determine whether any other action is necessary.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From January 2016

Health Care Services stated that it is committed to taking appropriate action against the analyst. Health Care Services stated that its human resources branch is reviewing information to determine the appropriate action to take.

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-1576

Recommendation #6 To: Water Resources, Department of

Water Resources should provide training to all officials who approve training requests regarding the difference between training categories, the maximum calendar year reimbursement limitations for each category, and the required documentation to support expense claims, including proof of attendance.

Agency Response From April 2017

Water Resources provided evidence that the remaining training coordinators subsequently attended the training.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From December 2016

Water Resources reported that held its annual training coordinators workshop in July 2016, in which it presented the same module from the training it presented in June 2016. Water Resources stated that three training coordinators missed the July 2016 training but would be trained soon. Further, Water Resources stated that it disseminated the all supervisors memo in September 2016.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From July 2016

Water Resources reported that it held a refresher training for training coordinators in June 2016, an administrative officers training in July 2016, and it is preparing an all supervisors memo to remind supervisors and managers of their roles and responsibilities in the training process. DWR also provided a copy of an all staff memo that was disseminated in May 2016 reiterating its training policies and procedures, including the four training categories and guidelines that must be followed when submitting training requests.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From April 2016

Water Resources reported that its new supervisors and managers receive performance planning and appraisal training as part of their mandated 80-hour supervisory course, in accordance with Government Code section 19995.4. In addition, Water Resources stated that it will provide all employees with a memorandum outlining the various training categories and associated monetary limits, along with a copy of Water Resources' policy and procedures. Water Resources further stated that it will provide supervisors and managers with an additional memorandum outlining their roles and responsibilities. Finally, Water Resources stated that its administrative officers and training coordinators also will receive in-person training.

California State Auditor's Assessment of Status: Pending


Case Number I2014-1576

Recommendation #7 To: Water Resources, Department of

Water Resources should amend the training request form and the training plan form to require that approving officials include written justification for the selected training category.

Agency Response From April 2017

Water Resources reported that it revised its training plan form to require the training office chief's approval when college-level courses are listed on the plan. In addition, Water Resources stated it amended its training request form to indicate that supervisors should provide justification for specific training categories when necessary.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From December 2016

Water Resources revised its training request and training plan forms. However, we notified Water Resources that the revisions do not accomplish the purpose of the recommendation since supervisors still would not be required to justify a job-required or job-related category selection so long as "the class aligns with the employee's duty statement." In addition, the new justification section on the training request does not require a justification for the career-related or upward mobility categories. Lastly, Water Resources' revision of the training plan did not include an area to justify the training category selection at all.

Water Resources responded to our concerns and indicated that it is an internal business decision whether to create or revise its forms. Regardless, Water Resources stated that it is moving forward with the purchase of an online learning management system (LMS), and until that time, it will continue to use the recently revised forms. Water Resources also stated that it will review all training processes and procedures as it configures the LMS and will keep our recommendation in mind as it creates the new training module.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From July 2016

Water Resources reported that its training request form is still undergoing revisions.

California State Auditor's Assessment of Status: Pending


Agency Response From April 2016

Water Resources reported that revisions to the training request and training plan form to require a justification from approving officials are in progress.

California State Auditor's Assessment of Status: Pending


Case Number I2014-1576

Recommendation #8 To: Water Resources, Department of

Water Resources should amend the training request form to require that division chiefs or higher level executives provide written justification for their approval of reimbursements beyond the maximum $2,000 per year amount allowed for job-related training.

Agency Response From April 2017

Water Resources reported that it revised its training plan form to require the training office chief's approval when college-level courses are listed on the plan. In addition, Water Resources stated it amended its training request form to indicate that supervisors should provide justification for specific training categories when necessary.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From December 2016

Water Resources revised the training request form, which now requires a supervisor to provide a justification when the training exceeds or will exceed the $2,000 limit or when a job-required or job-related class is not aligned with the employee's duty statement.

We notified Water Resources that the revisions do not accomplish the purpose of the recommendation. In particular, we expressed our concerns that Water Resources is equating our recommendation to require a justification for the training category selection with our recommendation to require a justification for approving training with costs exceeding $2,000, which can only be approved by a division chief, according to its own policy.

Water Resources responded that the division chief will review the immediate supervisor's justification and revise the statement, if necessary. In addition, Water Resources stated that it will focus its reviews on college courses.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From July 2016

Water Resources reported that revisions to its training request form are still in progress.

California State Auditor's Assessment of Status: Pending


Agency Response From April 2016

Water Resources reported that it believes the justifications provided by a first-line supervisor must clearly explain the justification for job-related training. Therefore, Water Resources believes it is not necessary for a division chief to add a separate or additional justification, as such a justification most likely would repeat the assessment of the first-line supervisor. However, the recommendation focuses on the written justification for approval when reimbursements exceed the maximum $2,000 per year allowed for job-related training. Water Resources' policy authorizes only a division chief to approve the reimbursement when it exceeds that amount.

California State Auditor's Assessment of Status: No Action Taken


Case Number I2014-1576

Recommendation #9 To: Water Resources, Department of

Water Resources should provide training to all training coordinators regarding their responsibility to track each employee's total calendar year reimbursement for each training category other than job-required training.

Agency Response From April 2017

Water Resources provided evidence that the remaining training coordinators subsequently attended the training.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From December 2016

Water Resources provided a copy of the spreadsheet template as well as the training roster from its June 2016 training coordinators training, which indicated that a few training coordinators did not attend the training. Water Resources also reported that in addition to the June 2016 training, it held the annual training coordinators workshop in July 2016 and presented the same training module from June 2016. Further, Water Resources reported that three training coordinators missed the July 2016 workshop and would be trained soon.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From July 2016

Water Resources reported that it held the training coordinator training in June 2016, and it sent the spreadsheet template to training coordinators to track training expenses until the management system is fully operational.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From April 2016

Water Resources reported that it is in the process of purchasing an online Learning Management System (management system) that will interface with its enterprise financial system to facilitate and track internal training processes. In addition, Water Resources stated that the management system will enable its staff--specifically DWR administrative officers and training coordinators--to generate reports and continuously monitor employee training expenditures to keep employees and their supervisors informed and in compliance with its policies.

Water Resources also stated that its training office conducts training coordinator workshops annually where calendar year reimbursements are reviewed and discussed as part of the overall curriculum. In addition, Water Resources stated that it plans to provide an additional training coordinator's workshop this year to emphasize the requirement that training coordinators must track each employee's total calendar year reimbursements. Further, Water Resources stated that its training office is developing a spreadsheet template to track calendar and fiscal year reimbursements that will be used until the management system is operational.

California State Auditor's Assessment of Status: Pending


Case Number I2014-1576

Recommendation #10 To: Water Resources, Department of

Water Resources should require division chiefs and the training chief to review and approve training requests for all job-required and job-related training.

Agency Response From September 2016

Water Resources reported that it distributed the all managers and supervisors memo in September 2016. An attachment to the memo specifically discusses the training chief's added responsibility to review and approve employee training plans and travel expense claim packages for college courses. In addition, Water Resources stated that travel expense claim packages will contain the training plan and training request forms.

California State Auditor's Assessment of Status: Resolved


Agency Response From April 2016

Water Resources reported that in 2015 its employees attended more than 18,000 job-required and 3,000 job-related training courses. Thus, based on current staffing levels, Water Resources stated that it is neither physically possible nor efficient to implement this recommendation. However, Water Resources stated that since the report focused on college courses, it will consider implementing a new requirement that its training office chief review and approve all college courses proposed via a training plan, along with completing a review and approval of the expense claim reimbursement packages prior to submission to its accounting office. Water Resources stated that it believes this action represents a reasonable, prudent, and feasible alternative to the recommendation as there were 90 college courses reimbursed in 2015.

California State Auditor's Assessment of Status: Pending


Case Number I2014-1576

Recommendation #11 To: Water Resources, Department of

Water Resources should require the last official who approves an employee's expense claim for job-required and job-related training to forward that claim to the training division, the division of fiscal services, or both, for a separate review of the employee's training forms and supporting documents before Water Resources reimburses the employee.

Agency Response From December 2017

Water Resources reported that in mid-December 2017, it will implement its new management system. In the system, when an employee requests external training, the request must be approved by the employee's supervisor and routed to an assigned travel coordinator to review documentation for accuracy and to ensure that sufficient funding is available. In addition, an employee's training plan for college-level courses and upward mobility and career-related training must be approved by the employee's supervisor and routed to the training chief for review against the employee's expense claim for cost reimbursement upon completion of the training. Further, Water Resources stated that the new system will allow continuous monitoring of employee training expenses by supervisors, training coordinators, and training division personnel.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From April 2017

Water Resources plans to implement in 2018 a management system that should provide continuous monitoring of employee training expenditures. Until its intended management system is operational, training office staff and fiscal services staff will complete spot reviews of job-required and job-related training reimbursement packages.

Water Resources provided us with documentation of its spot reviews. Subsequently, we requested additional details about the spot reviews, such as their frequency and any associated findings. Without this information, we could not ascertain whether the reviews sufficiently met the intent of the recommendation, which was to provide a separate review of the job-required and job-related training from individuals other than the approving officials.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From December 2016

Water Resources provided a travel expense claim audit operating procedure for job-required and job-related expense claim packages. We requested that Water Resources also provide its monthly spot audits since July 2016 as well as the first quarterly review by the fiscal services supervisor and office chief. Water Resources subsequently provided a spreadsheet tracking the number of travel expense claims sampled for review each month from July through November 2016, but it did not provide its quarterly review.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From July 2016

Water Resources reported that it implemented spot checks. We requested that Water Resources provide more details surrounding the spot checks, such as how frequently the spot checks would occur, whether the selections are random, and any findings from the spot checks it has completed.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From April 2016

Water Resources stated that supervisors and managers are responsible for approving reimbursements for training within their limits, in accordance with its policy and procedures. Thus, given the magnitude of the number of job-related and job-required training courses, Water Resources stated that it does not believe another level of review and approval is necessary or required.

Currently, Water Resources' fiscal services staff reviews expense claims. Until its intended management system is operational, which should provide continuous monitoring of employee training expenditures, training office staff and fiscal services staff will complete spot reviews of job-related and job-required training reimbursement packages. Once Water Resources has conducted these spot reviews and reported its results to our office, we will evaluate whether this temporary solution is adequate.

California State Auditor's Assessment of Status: Pending


Case Number I2015-0084

Recommendation #12 To: Correctional Health Care Services, California

Correctional Health Care should work, as necessary, with the state agency that currently employs the supervising nurse to require him either to correct his 2014 time sheets by using earned leave for the 14 workdays when he improperly claimed military leave or to pay the State $5,988 for the leave he improperly claimed on the 14 workdays.

Agency Response From May 2016

The agency that currently employs the supervising nurse revised his official leave balances to accurately reflect the use of earned leave credits rather than military leave. We reviewed the supervising nurse's leave records and verified their accuracy.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From March 2016

Correctional Health Care reported that personnel staff at the state agency that currently employs the supervising nurse obtained from him corrected time sheets regarding the 14 workdays when he improperly claimed military leave. Correctional Health Care stated that the corrected time sheets showed the supervising nurse had modified his leave to use earned leave credits instead of military leave. The current employing state agency plans to use the corrected time sheets to revise the supervising nurse's official leave balances.

California State Auditor's Assessment of Status: Pending


Agency Response From February 2016

Correctional Health Care stated that in collaboration with the California Department of Corrections and Rehabilitation (Corrections), which processes time sheets for Correctional Health Care, it notified the state agency that currently employs the supervising nurse of the results of the investigation. In addition, Correctional Health Care stated that Corrections and the state agency jointly agreed to advise the supervising nurse of the need either to correct his 2014 time sheets or to collect from him $5,988 for the improperly claimed leave.

California State Auditor's Assessment of Status: Pending


Case Number I2015-0084

Recommendation #13 To: Correctional Health Care Services, California

Correctional Health Care should work with the state agency that currently employs the supervising nurse to coordinate the appropriate disciplinary action to address the supervising nurse's improper activities, including his forging of documents and his dishonesty.

Agency Response From January 2017

Correctional Health Care reported that it contacted Corrections to conduct an investigation. It stated that Corrections completed its investigation in December 2016 and concluded that it could not sustain the allegation of dishonesty. In addition, Corrections stated that it identified only some errors on the military dates the supervising nurse had claimed. As a result, Correctional Health Care stated that it would not impose any disciplinary action.

California State Auditor's Assessment of Status: Resolved


Agency Response From September 2016

Correctional Health Care reported that it continues to work through the formal disciplinary process to address the recommendation. It stated that it plans to take disciplinary action at the conclusion of the process, which it estimated will be no later than January 2017.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From August 2016

The supervising nurse returned to work at Correctional Health Care in July 2016. Correctional Health Care stated that it continues to work with the California Department of Corrections and Rehabilitation regarding the formal disciplinary process and will take action at the conclusion of the process.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From June 2016

Corrections and the state agency that employs the supervising nurse conducted separate reviews of a wider time period of military leave use by the supervising nurse than the period reviewed in our investigation. They identified additional instances of military leave that required validation by the military. After Correctional Health Care requested that the military validate the additional instances of military leave use by the supervising nurse, the military's legal counsel advised that the military could not disclose information or validate military leave as requested. Thus, Correctional Health Care stated that it plans to initiate appropriate disciplinary action, and it plans to forward the action to the state agency that employs the supervising nurse to serve and impose on him.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From March 2016

Correctional Health Care stated that the California Department of Corrections and Rehabilitation, which processes time sheets for Correctional Health Care, and the state agency that currently employs the supervising nurse are continuing to coordinate their efforts to impose on the supervising nurse the appropriate disciplinary action.

California State Auditor's Assessment of Status: Pending


Agency Response From February 2016

Correctional Health Care stated that it and the state agency that currently employs the supervising nurse are coordinating their efforts to impose disciplinary action on the supervising nurse.

California State Auditor's Assessment of Status: Pending


Case Number I2015-0084

Recommendation #14 To: Correctional Health Care Services, California

Correctional Health Care should notify the proper military officials regarding the supervising nurse's creation of falsified and forged military documents.

Agency Response From February 2016

Correctional Health Care stated that it formally notified the proper military officials in February 2016 regarding the results and recommendations of our investigation.

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2014-1285

Recommendation #15 To: General Services, Department of

General Services should immediately revise the statewide policy contained in State Administrative Manual section 4100 so that state agencies are no longer required to use only General Services' vehicle rental services.

Agency Response From January 2016

General Services fully implemented this recommendation in January 2016. Specifically, it revised State Administrative Manual (SAM) section 4100 and other relevant SAM sections to allow state agencies to choose between its rental services and Enterprise Rent-A-Car when renting vehicles.

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2014-1285

Recommendation #16 To: General Services, Department of

General Services should notify CalRecycle and all other state agencies that it has revised the requirement in State Administrative Manual section 4100.

Agency Response From January 2016

General Services fully implemented this recommendation in January 2016. After General Services revised State Administrative Manual (SAM) section 4100 and other relevant SAM sections to allow state agencies to choose between its rental services and Enterprise Rent-A-Car when renting vehicles, it also sent a memorandum to all state agencies notifying them of the revisions to its policies.

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2014-0430

Recommendation #17 To: State Hospitals, Department of

State Hospitals should create a policy requiring the facility's filing official to be appropriately trained in the collection of Form 700s. In particular, this training should cover the identification of designated individuals and the requirement to collect a Form 700 upon individuals assuming designated positions, annually thereafter, and upon their leaving their designated positions.

Agency Response From June 2016

In June 2016 State Hospitals reported that the facility had issued a new policy to its staff. Our review of the policy determined that it had created a comprehensive policy that identified the facility's filing officers, the training the filing officers were required to complete, and set specific timelines for the completion of each training requirement. It also set specific requirements regarding how completion of the required training should be documented. Further, the policy clearly stated that filing officers should ensure that all designated employees are required to complete a Form 700 upon assuming a designated position, annually thereafter, and upon leaving their designated positions.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From March 2016

State Hospitals reported in March 2016 that the facility prepared an initial draft policy that had been reviewed and was undergoing revisions. It did not estimate a completion date for the facility's policy.

In addition, in January 2016 State Hospitals issued a memorandum to all Form 700 filing officials that details the responsibilities and training requirements for its filing officials. In March 2016, it reported that all of its filing officials attended training taught by the Fair Political Practices Commission regarding the collection of Form 700s.

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-0430

Recommendation #18 To: State Hospitals, Department of

State Hospitals should conduct a review of the facility's 2014 Form 700s by April 2016 to ensure that all designated filers submitted a Form 700.

Agency Response From May 2016

In March 2016, we reported that we requested clarification from State Hospitals regarding the assuming office Form 700 disclosures it initially had found missing during its audit. In April and May 2016, State Hospitals provided us with copies of the Form 700s submitted by seven employees who initially had failed to submit an assuming office form. We reviewed these forms and determined that the Form 700s submitted by these employees covered the required assuming office disclosures.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From March 2016

In January 2016, the facility completed its audit of 2014 designated filers and found that 13 additional employees failed to submit a total of 19 Form 700s. It reported that all forms were subsequently collected. However, our review of the facility's audit raised questions related to the collection of Form 700s when a designated filer assumes office. Specifically, we are unclear if the facility properly instructed its designated filers to report the financial interests they received for the 12 months before they assumed the relevant position. We have requested clarification from State Hospitals.

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-0430

Recommendation #19 To: State Hospitals, Department of

State Hospitals should require all designated filers—including those working in an acting capacity in a designated position—to take the statutorily mandated state ethics training online created by the Attorney General's Office, which includes information related to the Form 700 and its disclosure and filing requirements.

Agency Response From March 2016

State Hospitals notified all of its designated filers to take the required ethics training by mid-February 2016. It also informed the designated filers of the requirement to complete ethics training within six months of being hired and every two years thereafter. According to State Hospitals, all designated filers completed the required ethics training.

In addition, State Hospitals issued an administrative letter in February 2016 that echoed these requirements. In particular, the administrative letter establishes that its filing officials are responsible for reminding filers of their requirement to complete the training course. It also requires the maintenance of records for employees who attended the ethics training and requires that each employee provides a certificate of completion to the appropriate filing official.

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2014-0430

Recommendation #20 To: State Hospitals, Department of

State Hospitals should ensure that the psychiatrist discloses past financial interests to the FPPC for the time he acted as the medical director that he did not disclose previously.

Agency Response From April 2016

In April 2016, State Hospitals forwarded the psychiatrist's Form 700 to the FPPC for a review of his past financial interests that were not properly disclosed. State Hospitals informed the FPPC that in 2012, the psychiatrist earned at least $57,237 from other sources, with at least some of it being earned after May 2012, which was one year before he assumed the acting medical director position.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From March 2016

State Hospitals reported that on February 1, 2016, it received the psychiatrist's combined Form 700 for assuming office and leaving office, and it stated that its staff performed a full review of the form. However, our review of the psychiatrist's Form 700 revealed that he did not include any payments earned from the pharmaceutical company from May 2012 through May 2013 as required when he assumed the acting medical director position. We have requested clarification from State Hospitals regarding this concern.

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2013-1633

Recommendation #21 To: Developmental Services, Department of

Developmental Services should immediately conduct an audit of the leave accounting system from July 2015 through December 2015 to identify instances in which Porterville charged exempt represented employees working alternative schedules the incorrect number of leave hours for missed days of work.

Agency Response From December 2017

Developmental Services reported that at the time of the investigation, it complied with the instruction provided by CalHR regarding the leave accounting for FLSA-exempt employees on informal alternate workweek schedules.

California State Auditor's Assessment of Status: Resolved


Agency Response From November 2016

Developmental Services stated that it has not changed its stance on this recommendation. It will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From August 2016

Developmental Services reiterated in its monthly updates that it continues to disagree with the findings and recommendations of the investigation. Developmental Services also reiterated that it will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From May 2016

Developmental Services reiterated in its monthly updates that it continues to disagree with the findings and recommendations of the investigation. Developmental Services also reiterated that it will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From February 2016

Developmental Services reported that it respectfully continues to disagree with the findings and recommendations of the investigation. In addition, Developmental Services stated that the California Department of Human Resources (CalHR) has informed it that CalHR plans to issue statewide guidance in the near future on the reporting of time for represented employees exempt from the Fair Labor Standards Act (FLSA). Developmental Services stated that at that time, it would work with CalHR and the unit 19 representatives to address any issues of timekeeping for represented FLSA-exempt employees who work alternate work week schedules at the Porterville Developmental Center.

California State Auditor's Assessment of Status: No Action Taken


Case Number I2013-1633

Recommendation #22 To: Developmental Services, Department of

Developmental Services should adjust current employees' leave balances in the leave accounting system to correct any leave not properly charged as identified by this report and by the audit it conducts.

Agency Response From December 2017

Developmental Services reported that at the time of the investigation, it complied with the instruction provided by CalHR regarding the leave accounting for FLSA-exempt employees on informal alternate workweek schedules.

California State Auditor's Assessment of Status: Resolved


Agency Response From November 2016

Developmental Services stated that it has not changed its stance on this recommendation. It will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From August 2016

Developmental Services reiterated in its monthly updates that it continues to disagree with the findings and recommendations of the investigation. Developmental Services also reiterated that it will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From May 2016

Developmental Services reiterated in its monthly updates that it continues to disagree with the findings and recommendations of the investigation. Developmental Services also reiterated that it will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From February 2016

Developmental Services reported that it respectfully continues to disagree with the findings and recommendations of the investigation. In addition, Developmental Services stated that the California Department of Human Resources (CalHR) has informed it that CalHR plans to issue statewide guidance in the near future on the reporting of time for represented employees exempt from the Fair Labor Standards Act (FLSA). Developmental Services stated that at that time, it would work with CalHR and the unit 19 representatives to address any issues of timekeeping for represented FLSA-exempt employees who work alternate work week schedules at the Porterville Developmental Center.

California State Auditor's Assessment of Status: No Action Taken


Case Number I2013-1633

Recommendation #23 To: Developmental Services, Department of

By March 1, 2016, Developmental Services should take steps to work with unit 19 to change Developmental Services' current practice and require exempt represented employees to charge leave in accordance with the number of hours they are regularly scheduled to work.

Agency Response From November 2017

Developmental Services reported that in July 2017 CalHR issued a statewide policy regarding non-standard work schedules for exempt employees. The policy states that these employees must charge leave pursuant to their non-standard work schedules. For example, an exempt employee scheduled to work nine hours must charge nine hours of leave when absent for an entire workday. In addition, Developmental Services stated that it had implemented the directives from the policy at the Porterville Developmental Center and it confirmed that its other facilities are following the policy as well.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From November 2016

Developmental Services stated that it has not changed its stance on this recommendation. It will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From August 2016

Developmental Services reiterated in its monthly updates that it continues to disagree with the findings and recommendations of the investigation. Developmental Services also reiterated that it will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From May 2016

Developmental Services reiterated in its monthly updates that it continues to disagree with the findings and recommendations of the investigation. Developmental Services also reiterated that it will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From February 2016

Developmental Services reported that it respectfully continues to disagree with the findings and recommendations of the investigation. In addition, Developmental Services stated that the California Department of Human Resources (CalHR) has informed it that CalHR plans to issue statewide guidance in the near future on reporting of time for represented employees exempt from the Fair Labor Standards Act (FLSA). Developmental Services stated that at that time, it would work with CalHR and the unit 19 representatives to address any issues of timekeeping for represented FLSA-exempt employees who work alternate work week schedules at the Porterville Developmental Center.

California State Auditor's Assessment of Status: No Action Taken


Case Number I2013-1633

Recommendation #24 To: Developmental Services, Department of

Revise its established timekeeping audit procedures to ensure that exempt represented employees correctly charge leave according to the number of hours they are regularly scheduled to work.

Agency Response From December 2017

Developmental Services stated that it had implemented the directives from the CalHR policy issued in July 2017, which states that exempt employees must charge leave pursuant to their non-standard work schedules. Accordingly, Developmental Services stated that it revised its timekeeping procedures to ensure that FLSA-exempt represented employees at all of its facilities correctly charge leave according to the number of hours they regularly are scheduled to work.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From November 2016

Developmental Services stated that it has not changed its stance on this recommendation. It will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From August 2016

Developmental Services reiterated in its monthly updates that it continues to disagree with the findings and recommendations of the investigation. Developmental Services also reiterated that it will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From May 2016

Developmental Services reiterated in its monthly updates that it continues to disagree with the findings and recommendations of the investigation. Developmental Services also reiterated that it will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From February 2016

Developmental Services reported that it respectfully continues to disagree with the findings and recommendations of the investigation. In addition, Developmental Services stated that the California Department of Human Resources (CalHR) has informed it that CalHR plans to issue statewide guidance in the near future on reporting of time for represented employees exempt from the Fair Labor Standards Act (FLSA). Developmental Services stated that at that time, it would work with CalHR and the unit 19 representatives to address any issues of timekeeping for represented FLSA-exempt employees who work alternate work week schedules at the Porterville Developmental Center.

California State Auditor's Assessment of Status: No Action Taken


Case Number I2013-1633

Recommendation #25 To: Developmental Services, Department of

Developmental Services should train its personnel staff at headquarters and all developmental centers regarding the new policy and accompanying procedures.

Agency Response From December 2017

Developmental Services stated that it had implemented the directives from the CalHR policy issued in July 2017. In addition, it stated that it provided the new policies and the relevant procedures to the personnel staff at its headquarters and developmental centers.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From November 2016

Developmental Services stated that it has not changed its stance on this recommendation. It will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From August 2016

Developmental Services reiterated in its monthly updates that it continues to disagree with the findings and recommendations of the investigation. Developmental Services also reiterated that it will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From May 2016

Developmental Services reiterated in its monthly updates that it continues to disagree with the findings and recommendations of the investigation. Developmental Services also reiterated that it will take no action until it receives guidance from CalHR regarding how to address the timekeeping issues of represented employees exempt from the FLSA who work alternate schedules.

California State Auditor's Assessment of Status: No Action Taken


Agency Response From February 2016

Developmental Services reported that it respectfully continues to disagree with the findings and recommendations of the investigation. In addition, Developmental Services stated that the California Department of Human Resources (CalHR) has informed it that CalHR plans to issue statewide guidance in the near future on reporting of time for represented employees exempt from the Fair Labor Standards Act (FLSA). Developmental Services stated that at that time, it would work with CalHR and the unit 19 representatives to address any issues of timekeeping for represented FLSA-exempt employees who work alternate work week schedules at the Porterville Developmental Center.

California State Auditor's Assessment of Status: No Action Taken


Case Number I2014-0948

Recommendation #26 To: State Hospitals, Department of

State Hospitals should take appropriate action to address the insufficient hours worked by the four psychiatrists and their dishonesty by April 1, 2016.

Agency Response From May 2017

State Hospitals reported that one psychiatrist separated from state service in March 2017, one psychiatrist was dismissed in March 2017, and one psychiatrist resigned in March 2017.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From February 2017

State Hospitals reported that it completed its investigation of the four psychiatrists and has worked with its legal and personnel staff to take action against them. It reported that one of the psychiatrists resigned in October 2016 and that it has action pending against the other three psychiatrists.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From March 2016

In March 2016 State Hospitals requested copies of evidence we had obtained during the course of our investigation and launched its own investigation into the insufficient hours worked by the four psychiatrists and their dishonesty.

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-0948

Recommendation #27 To: State Hospitals, Department of

State Hospitals should determine whether other psychiatrists or other staff consistently work less than an average of 40 hours and take appropriate disciplinary and corrective action where needed.

Agency Response From October 2017

State Hospitals reported that it completed its review of additional psychiatrists and other staff. State Hospitals identified a total of nine psychologists and psychiatrists with unreported leave hours that it had worked to correct. In addition, State Hospitals stated that it provided training in 2017 to these psychiatrists and other staff to reinforce the importance of accuracy in attendance records and the types of disciplinary actions related to attendance issues.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From February 2017

State Hospitals initiated a review of the 34 other staff mentioned in our investigative report who may have worked less than an average of 40 hours per week. In addition, State Hospitals provided supporting documentation regarding its review and stated that it narrowed the review to 21 employees who appear to be working an insufficient number of hours.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From March 2016

State Hospitals reported that its executive management is reviewing this recommendation to determine the next steps it should take.

California State Auditor's Assessment of Status: Pending


Case Number I2014-0948

Recommendation #28 To: State Hospitals, Department of

State Hospitals should ensure that by March 1, 2016, all exempt employees understand the requirement to work an average of 40 hours per week over the course of a year and to seek prior approval for arriving late, leaving early, or taking an extended break.

Agency Response From March 2016

In January 2016 Patton State Hospital (Patton) issued an absence and attendance reporting memorandum to all of its employees that outlined specific expectations of absence and attendance reporting. In addition, supervisors at Patton met with each of their employees to review the expectations set forth in an attendance reporting expectations memorandum. Each employee was asked to sign this memorandum, indicating they had reviewed and discussed it with their supervisor. Further, in February 2016 the State Hospitals director issued an all-staff email that addressed the maintenance of regular and approved work schedules for exempt employees and all other employees. Finally, in February 2016 State Hospitals posted to its intranet an administrative letter regarding expected work hours for its exempt employees.

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2014-0948

Recommendation #29 To: State Hospitals, Department of

State Hospitals should create and implement a system that will allow supervisors to adequately assess the hours worked by psychiatrists and other exempt employees.

Agency Response From February 2017

State Hospitals informed us that it has implemented a number of policies and procedures to address the recommendation. Specifically, it now requires exempt employees to sign in and out upon their arrival and departure from their work areas, and a supervisor is assigned to review the sign-in sheets to ensure compliance. Also, each program director is required to submit a timeliness attendance audit report each month that contains a summation of employees' attendance compliance or non-compliance.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From March 2016

State Hospitals reported that executive management at Patton is developing auditing procedures to ensure that exempt employees adhere to their work schedules. In addition, it stated that Patton executive management is developing procedures for conducting random reviews of work hours.

California State Auditor's Assessment of Status: Pending


Case Number I2014-0948

Recommendation #30 To: State Hospitals, Department of

State Hospitals should provide training and coaching to supervisors and management regarding how to hold psychiatrists and other exempt employees accountable for their hours worked and how to pursue disciplinary action if necessary.

Agency Response From October 2017

State Hospitals stated that it provided training in August 2017, September 2017, and October 2017 to supervisors and management to reinforce the importance of accuracy in attendance records and the types of disciplinary actions related to attendance issues.

California State Auditor's Assessment of Status: Fully Implemented


Agency Response From February 2017

State Hospitals reported that in May 2016 it approved two administrative directives regarding absence and attendance reporting and training for supervisors and managers, and it emailed a copy of the directives to all staff at Patton State Hospital. In addition, State Hospitals stated that it intends to initiate training sessions for supervisors in March 2017. State Hospitals plans to include the following elements in the training course: absence and attendance reporting and monitoring, preventing attendance abuse, and correcting attendance abuse.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From March 2016

State Hospitals reported that in January 2016 Patton issued an absence and attendance reporting memorandum to managers and supervisors, as well as all other employees. In addition, the executive director at Patton met with the managers and supervisors to discuss the memorandum. However, even though Patton has started the process, State Hospitals has not provided sufficient information to ensure that it actually trained the supervisors and managers about how to hold exempt employees accountable and how to pursue disciplinary action.

California State Auditor's Assessment of Status: Partially Implemented


Case Number I2014-0948

Recommendation #31 To: State Hospitals, Department of

State Hospitals should provide formal guidance about state laws and departmental policies relevant to misuse of state resources and incompatible activities to staff at Patton and at other State Hospitals facilities by March 1, 2016.

Agency Response From March 2016

In January 2016 State Hospitals posted on its intranet an administrative letter regarding incompatible activities. In addition, in February 2016 the State Hospitals director issued an all-staff email that addressed incompatible activities.

California State Auditor's Assessment of Status: Fully Implemented


Case Number I2014-0948

Recommendation #32 To: State Hospitals, Department of

State Hospitals should seek to persuade the State to enter into collective bargaining agreements that provide for time monitoring to ensure that the State obtains full value from its employees exempt from FLSA requirements.

Agency Response From November 2017

State Hospitals reported that it worked collaboratively with the California Department of Human Resources throughout the recent negotiations process with the unions for enhanced collective bargaining agreement language regarding time monitoring for its employees that are exempt from FLSA requirements; however, its efforts were not successful.

California State Auditor's Assessment of Status: Resolved


Agency Response From October 2017

State Hospitals has not provided us with any additional information regarding this recommendation.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From February 2017

State Hospitals stated that the bargaining unit is still in active negotiations regarding the implementation of this recommendation.

California State Auditor's Assessment of Status: Partially Implemented


Agency Response From March 2016

State Hospitals reported that its labor relations branch staff contacted staff at its facilities to seek recommendations for improvements to collective bargaining agreements. State Hospitals stated that it compiled the recommendations and has been communicating with the California Department of Human Resources and the collective bargaining negotiating teams to improve contract language and/or policies to ensure that the State obtains the full value from its employees who are exempt from FLSA requirements.

California State Auditor's Assessment of Status: Partially Implemented


All Recommendations in I2016-1